Wells Fargo’s action plunges after larger than expected loss and shortfall

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Actions de Wells Fargo & Co. WFC,
-0,23%
dipped 3.7% in before-market trading on Tuesday after the bank moved into a larger-than-expected second-quarter loss and more-than-expected falling income as the provision for loss reserves on receivables increased by $ 8.4 billion. The bank reported a net loss of $ 2.69 billion, or 66 cents a share, after a net profit of $ 5.85 billion, or $ 1.30 a share, in the same period a year latest. The FactSet consensus was for a loss of 16 cents per share. Total revenues fell 17% to $ 17.84 billion, net interest income decreased 18% to $ 9.9 billion to miss the FactSet consensus by $ 10.3 billion, and other revenues that interest falling by 16% to $ 8.0 billion for not meeting the expectations of $ 8.1 billion. The net interest margin fell to 2.25% against 2.82%, below expectations of 2.33%. in non-interest income, market sensitive revenues amounted to $ 1.6 billion, after a loss of $ 1.1 billion. The allowance for credit losses totaled $ 20.4 billion, up $ 8.4 billion from the end of the first quarter, including an increase of $ 6.4 billion for commercial loans , citing the expected deterioration in credit following the COVID-19 pandemic. The stock has fallen 15.8% in the past three months until Monday, while the S&P 500 SPX,
-0,93%
increased 10.9%.

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