Wells Fargo shares rise after lack of profits and income, but NII beats

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Wells Fargo & Co. Stocks
WFC,
+ 1.51%

The 2.2% rise in pre-market trade took place on Tuesday after the bank announced first-quarter profits and revenues that did not meet expectations, penalized by the effects of the COVID-19 pandemic , while net interest income and margin exceeded forecasts. Net profit fell to $ 653 million, or 1 cent per share, from $ 5.86 billion, or $ 1.20 per share, a year ago. The results were affected by the creation of $ 3.1 billion in reserves for loans and debt securities. The FactSet consensus was for earnings per share of 38 cents. Total revenue fell to $ 17.72 billion from $ 21.61 billion, below the FactSet consensus of $ 19.40 billion. Net interest income fell 8% to $ 11.31 billion but surpassed the FactSet consensus by $ 10.90 billion as net interest margin fell to 2.58% against 2.91% but exceeding expectations by 2.48%. Non-performing assets totaled $ 6.4 billion, down 13% from a year ago but up 13.4% from the fourth quarter. Community banking revenues decreased 19.2% to $ 9.50 billion, due to net losses from equity securities, lower mortgage bank revenues and credit card fees. credit. The stock has fallen 36.3% in the past three months to Monday, while the SPDR Financial Select Sector ETF
XLF,
+ 1.99%

fell 27.0% and the S&P 500
SPX,
+ 2.57%

fell 15.9%.

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