Wells Fargo Gains on Q1 Figures

Elsewhere in the banking sector, Wells Fargo & Company (NYSE:WFC) was out Friday with its quarterly announcement.

Net income was reported as $5.9 billion, compared with $5.1 billion in first quarter 2018. Diluted earnings per share (EPS) of $1.20, compared with $0.96. Revenues were $21.6 billion, down from $21.9 billion.

Average loans were $950.1 billion in the first quarter, up $3.8 billion from the fourth quarter. Period-end loan balances were $948.2 billion at March 31, 2019, down $4.9 billion from December 31, 2018.

Commercial loans were down $1.2 billion compared with December 31, 2018, predominantly due to a $1.1 billion decline in commercial and industrial loans, partially offset by $460 million of growth in commercial real estate loans.

Non-interest expense of $7.7 billion increased $657 million, or 9%, predominantly driven by seasonally higher personnel expense and higher deferred compensation expense (P&L neutral, largely offset by net gains from equity securities), partially offset by lower other expense, operating losses, and core deposit and other intangibles amortization expense

According to Interim CEO Allen Parker, “Since assuming this role, I have been focused on leading our Company forward by emphasizing my top priorities: serving our customers and supporting our Wells Fargo team members; meeting and exceeding the expectations of our regulators; and continuing the important transformation of the Company.

“We have more work ahead of us, and our strong leadership team is dedicated to making our Company the most customer-focused, efficient, and innovative Wells Fargo ever.”

Shares added 27 cents to $48.01