Wells Fargo Beats Estimates, Shares Fall After Loans Decline
- Loans dropped as consumers and businesses stay on sidelines
- Revenue, net income exceeded analysts’ expectations in quarter
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Wells Fargo & Co. beat analysts’ expectations for third-quarter profit as Chief Executive Officer Charlie Scharf makes progress on his turnaround efforts, but shares declined as expenses were higher than anticipated and loans fell.
The bank reported net income rose to $5.1 billion, padded by a $1.7 billion reserve release, according to a statement Thursday. Still, the firm took a $250 million charge related to its latest regulatory order, which drove costs higher than analysts expected.