Wells Fargo Dips on Forecast for Higher Loan-Loss Provisions

Wells Fargo & Co. shares fell as much as 8.3% after the bank’s chief financial officer predicted higher loan-loss provisions in the current quarter and a sharp drop in interest income this year.

Net interest income will decline more than 11% this year after the Federal Reserve slashed rates, CFO John Shrewsberry said at an investor conference Wednesday. He also said the bank will set aside more for bad loans this quarter than the first quarter’s $4 billion.