Wells Fargo Profit Falls as Energy Loans Sour, Costs Climb
- Second-quarter net income declined 2.8% to $5.6 billion
- Expenses rose 3.2 percent on higher compensation, benefits
The Numbers Don’t Lie: Wells Fargo Earnings
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Wells Fargo & Co., the world’s most valuable bank, said second-quarter profit fell 2.8 percent as more energy loans soured, expenses rose and revenue from mortgage lending declined.
Net income slid to $5.6 billion, or $1.01 a share, from $5.72 billion, or $1.03, a year earlier, the San Francisco-based company said Friday in a statement. That matched the average estimate of 30 analysts surveyed by Bloomberg. Mortgage banking revenue declined 17 percent from a year earlier to $1.41 billion, falling short of the $1.8 billion estimates of Oppenheimer & Co.’s Chris Kotowski and Jefferies Group’s Ken Usdin.