Wells Fargo & Co.’s stock experienced a 2% increase in early trading on Friday, following the bank’s impressive performance in the third quarter. The bank reported a net income of $5.767 billion, equivalent to $1.48 per share, compared to $3.592 billion, or 86 cents per share, in the same period last year.
Revenue also saw a positive growth, reaching $20.857 billion compared to $19.566 billion last year. These results surpassed the FactSet consensus of $1.24 earnings per share and $20.086 billion in revenue.
CEO Charlie Scharf highlighted the factors contributing to their revenue growth, stating, “Our year-over-year revenue growth can be attributed to increased net interest income, noninterest income, and the investments we have made in our businesses.” He also stated that expenses had decreased due to lower operating losses.
Despite the bank’s overall positive performance, Scharf acknowledged the challenges posed by the slowing economy, with declining loan balances and modest deterioration in charge-offs.
Wells Fargo’s stock (WFC) has experienced a decline of approximately 4% year-to-date, in contrast to the 13% increase witnessed by the S&P 500 (SPX).