Wells Fargo (NYSE:WFC) reported on Wednesday disappointing earnings for the third quarter as low rates put pressure on the bank’s net interest income.
Information released this morning showed the San Francisco-based bank reported net income of $2.0 billion, or $0.42 per diluted common share, for third quarter 2020, compared with net income of $4.6 billion, or $0.92 per share, for third quarter 2019, and a net loss of $2.4 billion, or $0.66 per share, for second quarter 2020.
Revenue was $18.9 billion, down from $22.0 billion. Net interest income was $9.4 billion, down $2.3 billion.
Wells Fargo shares have been under pressure this year as the company grapples with the economic slowdown sparked by the coronavirus pandemic. Entering Wednesday’s session, Wells is down 54% year to date.
The stock is also lagging shares of rival banks in 2020. JPMorgan Chase (NYSE:JPM) is down 27.7% in 2020 and Bank of America (NYSE:BAC) has fallen 29.2% in that time period.
Said CEO Charlie Scharf, “Our third quarter results reflect the impact of aggressive monetary and fiscal stimulus on the U.S. economy. Strong mortgage banking fees, higher equity markets, and declining sequential charge-offs positively impacted our results, while historically low interest rates reduced our net interest income and our expenses continued to remain elevated.
“We continue to provide support for our customers having helped more than 3.2 million consumers and small businesses by deferring payments and waiving fees.”
Wells is also still reeling from its fake-account scandal in 2016.
WFC shares docked 73 cents, or 2.9%, to $24.01.
