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In the first quarter, Wells Fargo earned almost 3.7 billion US dollars (3.4 billion euros), almost a billion less than a year earlier, as announced on Thursday in San Francisco. The bank released further provisions for possible loan defaults that it had formed due to the uncertainties caused by the corona pandemic. But Wells Fargo boss Charlie Scharf anticipates more bad loans again in the foreseeable future.
The manager referred to the US Federal Reserve’s announcements that it would do more to combat the high inflation rates. This will slow down economic growth, said Scharf according to the announcement. The war in Ukraine is also endangering economic development. Wells Fargo shares are down more than 3 percent in premarket US trading.
In the first quarter, the bank’s earnings fell 5 percent to $17.6 billion. While net interest income rose 5 percent, other income fell 14 percent. The institute recorded a decline in new mortgage loans. Bond trading also hummed less, and investment banking fee income fell.
Wells Fargo shares temporarily lost 4.17 percent to $46.52 in NYSE trading.
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