Wells Fargo Profit Slumps on Severance, Remediation Charges
- Net income falls 56% on higher costs, lower interest income
- Loan-loss provisions were half what analysts had expected
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Wells Fargo & Co. profit slumped 56% as Chief Executive Officer Charlie Scharf took charges to address old scandals and begin his job-cutting push.
The bank posted a surprise increase in third-quarter expenses as it set aside almost $1 billion for customer remediation and $718 million in restructuring charges. That countered loan-loss provisions that came in at less than half what analysts had expected.