Wells Fargo & Company (NYSE: WFC) shares keeled over Friday on the release of the bank’s second-quarter financial figures.
The San Francisco-based Wells Fargo reported net income of $5.2 billion, compared with $5.9 billion in the second quarter of 2017
Diluted earnings per share (EPS) was $0.98, compared with $1.08 in the prior-year quarter. Revenue was $21.6 billion, down from $22.2 billion last year.
Net interest income was $12.5 billion, up $70 million, or 1%.
Wells Fargo also returned $4.0 billion to shareholders through common stock dividends and net share repurchases, up 17% from $3.4 billion in second quarter 2017.
Chief Financial Officer John Shrewsberry said, "We are on track to meet our expense reduction expectations.
"In addition, we received a non-objection to our 2018 Capital Plan, which includes an increase in our quarterly common stock dividend rate in third quarter 2018 to $0.43 per share, subject to board approval, as well as up to $24.5 billion of gross common stock repurchases during the four-quarter period beginning in third quarter 2018."
The bank has been under pressure for several quarters because of multiple probes into its sales practices. But the Federal Reserve gave it the go-ahead last month to buy back $24.5 billion of its stock, more than double the amount it bought last year, and raise its quarterly dividend four cents to 43 cents a share.
Earlier this year, the Fed slapped a cap on Wells Fargo's assets, telling it to improve operational controls.
Wells Fargo fell $2.11, or 3.8%, to $53.92 Friday morning.
