From CNBC: 2024-04-12 13:23:20

Wells Fargo reported strong earnings results, beating revenue expectations. Adjusted EPS of $1.26 was above estimates despite a special assessment charge. CEO Charlie Scharf is making progress in cleaning up the bank’s operations, aiming to boost fee-generating revenue streams and remove the asset cap. The bank repurchased $6.1 billion in stock in Q1.

While Wells Fargo missed guidance for full-year 2024 net interest income, the bank focused on growing fee-based revenues. Q1 results showed revenue declines in consumer banking, lending, and commercial banking. However, corporate and investment banking revenue increased, driven by investment banking revenues. Non-interest expenses fell due to efficiency gains. Management is diversifying revenue streams to reduce reliance on interest-based income.

Even with some revenue declines, Wells Fargo’s strategic moves are showing positives. The bank is focused on increasing efficiencies and driving return on tangible common equity. Management maintained full-year non-interest expense guidance, emphasizing fee-based revenue growth. Wells Fargo aims to reduce volatility and reliance on interest rates for revenue generation. The bank is on track for progress and shareholder returns.



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