Wells Fargo (NYSE: WFC) reported fourth-quarter earnings that beat analyst estimates but fell just short on revenue.
The third-largest bank by assets said it earned $1.16 a share on revenue of $22.05 billion. The bank was expected to report fourth-quarter earnings of $1.07 per share on revenue of $22.38 billion.
Net interest income in fourth quarter 2017 was $12.3 billion, down $136 million, compared with third quarter 2017, driven primarily by a negative $183 million one-time adjustment related to leveraged leases due to the U.S. Tax Act, which reduced loan yields in the fourth quarter, partially offset by a modest net benefit from all other growth, re-pricing and variable items.
"While we faced challenges in 2017, we are a much better company today than we were a year ago, and I am confident that this year Wells Fargo will be even better," CEO Tim Sloan said in a statement.
“The progress we made over the past year was evident in the fourth quarter in higher deposits, loan growth particularly in commercial loans, increased debit and credit card transactions, and record client assets under management in Wealth and Investment Management.
“While we faced challenges in 2017, we are a much better company today than we were a year ago, and I am confident that this year Wells Fargo will be even better.”
Wells Fargo shares retreated 36 cents Friday to $62.65, within a 52-week trading range of $49.27 to $63.67.
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