Wells Fargo Posts Weaker Earnings
October 13 2017 - 8:41AM
Dow Jones News
By Emily Glazer
Wells Fargo & Co. said its third-quarter profit fell as the
bank continues to seek growth while trying to move past its
sales-practices scandal from more than a year ago.
The bank reported a profit of $4.6 billion, or 84 cents a share,
which includes a charge of $1 billion, or 20 cents a share, for
previously disclosed mortgage-related regulatory investigations. In
the year-ago period, the bank reported earnings of $5.64 billion,
or $1.03 a share.
Analysts polled by Thomson Reuters had expected earnings of
$1.03 a share in the latest period.
Revenue slipped to $21.93 billion from $22.33 billion. Analysts
had expected $22.4 billion.
Wells Fargo, led by Chief Executive Timothy Sloan, had been one
of the more consistent big banks at growing earnings and revenue.
Shares, though, dropped last year after the bank agreed to a $185
million settlement over opening accounts with fictitious or
unauthorized information. It recently updated the number of
potentially affected accounts to 3.5 million.
That is on top of consumer-lending problems around auto
insurance charges and mortgage fees that regulators are probing.
Mr. Sloan testified in a congressional hearing last week on those
matters.
Wells Fargo also continues to face a spate of state and federal
investigations that the bank has said it is cooperating with.
Investors have so far given Mr. Sloan time to clean up the
problems, despite the fact the bank's shares have underperformed
big rivals over the past year.
Though the bank's shares have bounced back following the
election, rising about 21%, they have lagged behind the 32% jump in
the KBW Nasdaq Bank Index over the same period. The bank's shares
are about flat since the beginning of the year, through
Thursday.
In premarket trading Friday, Wells Fargo shares fell 1.7% to
$54.25.
Write to Emily Glazer at emily.glazer@wsj.com
(END) Dow Jones Newswires
October 13, 2017 08:26 ET (12:26 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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