Finance
Wells Fargo Slumps as Higher-Than-Expected Costs Crimp Results
- Lender raised its full-year expense guidance to $54 billion
- Bank says higher remediation costs, compensation to blame
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Wells Fargo & Co. shares suffered their biggest intraday drop since the depths of last year’s regional-bank crisis as the lender’s second-quarter results were marred by higher-than-expected costs.
Expenses for the quarter climbed 2% to $13.3 billion, according to a statement Friday. That was higher than the 0.2% increase that analysts had expected, with the vast majority of the increase coming from operating losses.