From CNBC: 2024-10-11 08:11:12

In the third quarter, Wells Fargo reported lower earnings and revenue compared to last year, with a decline in net interest income. Shares rose 3% in premarket trading. CEO Charles Scharf highlighted the bank’s shift in earnings profile due to strategic investments and diversification of revenue sources.

Net interest income for the San Francisco-based lender decreased to $11.69 billion, citing higher funding costs and customer migration to higher-yielding deposit products. Net income fell to $5.11 billion, or $1.42 per share, from $5.77 billion, or $1.48 per share a year ago. Revenue also dipped to $20.37 billion from $20.86 billion.

Wells Fargo set aside $1.07 billion for credit losses in the third quarter, including a decrease in the allowance for credit losses. The bank repurchased $3.5 billion of common stock in the quarter, bringing the nine-month total to over $15 billion, a 60% increase from last year. Despite this, the bank’s shares have lagged behind the S&P 500, gaining only 17% in 2024.

Read more: Wells Fargo WFC Q3 2024 earnings