The prominent banking and financial service provider, Wells Fargo, beats most analysts forecasts on tier second-quarter report this week. The bank manages to pull off a great quarter along with other prominent banks who also released their second-quarter performance this week, the banks include; JP Morgan and Citi bank who also did great on their reports.
More Information on the Report
Wells Fargo manages to hit the 2% increase in its revenue for the duration of the quarter; most analysts and the Wall Street were predicting that the financial service provider would only be hitting the 1% increase and earnings of $1.01 per share.
The bank manages to score strong financial results this quarter, their net income as of the end of the quarter was $5.8 billion and was increased by a total of 5% from the same quarter last year. The EPS of the company was at $1.07, a massive 6$ increase for this quarter; while the company’s revenue was brimming at $22.2 billion. The net interest income was also showing signs of positivity at $12.5 billion, up by $750 million or a total of 6% increase.
Wells Fargo’s CEO Tim Sloan noted in the earnings report that, "Second quarter 2017 results demonstrated the benefit of our diversified business model as we continued to generate strong financial results, invest for the future, and adhere to our prudent risk discipline. We remain committed to reducing expenses and improving the efficiency of our company, and we are very focused on our recently announced goals.”
Sloan also mentioned that “As we work to improve our efficiency, we will also continue to innovate for the future. We recently advanced a number of important customer-focused initiatives, such as the launch of the ZelleSM person-to-person payment platform to our 28 million digital customers. As always, our success starts with our customers, and I appreciate the effort of our 271,000 team members in helping our customers succeed financially. “
Chief Financial Officer John Shrewsberry noted that “Wells Fargo reported $5.8 billion of net income in the second quarter, up on a linked-quarter and year-over-year basis. Overall results were solid in a period with continued modest economic growth and included growth in net interest income and continued improvement in credit results. Second quarter 2017 also included discrete tax benefits totaling $186 million, or approximately $0.04 per share, primarily as a result of our agreement to sell Wells Fargo Insurance Services.”
All-in-all the bank proved to be looking to have a great financial year and a great bounce back from their first quarter’s debacle; the company missed the revenue forecasts last quarter but manages to beat the rest of forecasts. The company was drowning in the consumer loans and outstanding credit both declined at the latter quarter which pushed the revenues down.
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