From CNBC: 2024-07-12 07:25:53

Wells Fargo reported a 9% decline in net interest income, even though second-quarter earnings and revenue exceeded Wall Street expectations. Earnings per share were $1.33 versus $1.29 expected, while revenue was $20.69 billion versus $20.29 billion expected. The bank saw a 9% year-over-year decline in net interest income due to higher interest rates on funding costs.

Wells Fargo’s shares dropped over 5% in premarket trading. CEO Charlie Scharf noted that fee-based revenue growth offset the decline in net interest income. The bank’s second-quarter net income dipped to $4.91 billion from $4.94 billion a year ago. It repurchased over $12 billion of common stock in 2024.

Despite the decline in net interest income, Wells Fargo expects to increase its third-quarter dividend by 14%. The bank’s stock is up more than 22% this year, outperforming the S&P 500. Wells Fargo’s investments in investment advisory, trading, and investment banking fees helped offset the decline in net interest income.

Read more: Wells Fargo WFC Q2 2024 earnings