Wells Fargo: returns to profit as charge-offs decrease
(CercleFinance.com) - Wells Fargo on Wednesday said it swung to a profit in the third quarter, driven by strong mortgage fees, higher equity markets, and declining sequential charge-offs.
The San Francisco-based lender said profit for the period from July through September was more than two billion dollars, or 42 cents a share, from a loss of 2.4 billion dollars, or 66 cents a share, in the second quarter.
Chief executive officer Charlie Scharf said the results reflected the impact of aggressive monetary and fiscal stimulus on the US economy.
However, Wells Fargo was also hit by historically low interest rates, and the group's expenses continued to remain elevated, he said.
On a positive note, the quarterly loss rate as a percentage of average loans in the third quarter was 0.29%, down from 0.46% in the prior quarter and up from 0.27% a year ago.
The shares were down 1.6% in pre-market trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The San Francisco-based lender said profit for the period from July through September was more than two billion dollars, or 42 cents a share, from a loss of 2.4 billion dollars, or 66 cents a share, in the second quarter.
Chief executive officer Charlie Scharf said the results reflected the impact of aggressive monetary and fiscal stimulus on the US economy.
However, Wells Fargo was also hit by historically low interest rates, and the group's expenses continued to remain elevated, he said.
On a positive note, the quarterly loss rate as a percentage of average loans in the third quarter was 0.29%, down from 0.46% in the prior quarter and up from 0.27% a year ago.
The shares were down 1.6% in pre-market trading.
Copyright (c) 2020 CercleFinance.com. All rights reserved.