Finance
Wells Fargo Earnings Marred by $2 Billion Regulatory Charge
- Net interest income tops estimates as rate hikes help margins
- CEO Scharf says credit losses to rise, though timing unclear
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Wells Fargo & Co. set aside an additional $2 billion to resolve a variety of legacy regulatory and legal woes as Chief Executive Officer Charlie Scharf continues wrestling with the costly fallout from scandals he was hired to resolve.
The charge hampered a third quarter that was better than expected on some metrics. Net interest income, for example, rose 36% to $12.1 billion in the three months ended Sept. 30, the San Francisco-based bank said Friday in a statement. That’s the most since 2019 and better than the 31% average estimate of analysts surveyed by Bloomberg.