Shares of Wells Fargo & Co. (WFC) are down 6% after the U.S. bank reported a steep decline in its net interest income for this year’s second quarter.
The San Francisco-based bank reported $11.92 billion U.S. in net interest income, which is a key measure of what a bank makes on its various loans.
The Q2 net interest income figure was down 9% year-over-year and below the $12.12 billion U.S. that analysts had forecast, according to data from FactSet.
Management at Wells Fargo blamed the decline in net interest income on the impact of higher interest rates on funding costs.
The disappointing net interest income figure overshadowed what was otherwise a strong quarter for the lender.
Wells Fargo announced Q2 earnings per share (EPS) of $1.33 U.S., which topped forecasts of $1.29 U.S.
Revenue in the April through June period totaled $20.69 billion U.S. compared to $20.29 billion U.S. that was expected on Wall Street.
In its earnings news release, Wells Fargo singled out “investment advisory, trading, and investment banking fees” as giving its financial results a boost during the quarter.
Prior to today (July 12), Wells Fargo’s stock had risen 39% over the past 12 months and was trading at $60.16 U.S. per share.
