Wells Fargo reported better-than-expected second-quarter results with total revenue increasing 0.6% to $20.8 billion and adjusted earnings per share of $1.54 beating estimates. Despite this, the stock dropped as management reduced guidance on a key banking metric. The bank’s net interest income declined, and it expects net interest income to be flat year-over-year. Wells Fargo is focusing on increasing fee-based market business, sacrificing some net interest income in the short run for long-term growth. The bank repurchased shares and provisions for credit losses were lower than expected. Wells Fargo remains committed to becoming more efficient, reducing headcount for 20 consecutive quarters. The bank’s CEO, Charlie Scharf, aims to maximize overall returns rather than focusing solely on net interest income. Wells Fargo is upgrading its stock rating and reiterating a $90 price target.

Read more at CNBC: We’re upgrading Wells Fargo stock despite its earnings-driven decline