Wells Fargo: profit up despite heavy charge

(CercleFinance.com) - Wells Fargo reported a 9% increase in Q4 net profit on Friday, despite a heavy charge related to a settlement with the US banking regulator.


The San Francisco, California-based company posted a net profit of $3.5bn for Q4, compared with $3.1bn a year earlier.

The financial group points out that its Q4 accounts include a $1.9bn charge for a 'special' revaluation by the US Federal Deposit Insurance Corporation (FDIC).

Added to this was a provision of $969m for future severance payments as part of its restructuring plan.

Also of concern, provisions for bad debts rose to almost $1.3bn in the past quarter, compared with $957m in Q4 2022.

We are closely monitoring the state of the credit market, and while it is true that we are seeing some deterioration, this is in line with our forecasts, management said.

Following this publication, the stock lost 1.6% in pre-market trading on Wall Street.


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