Wells Fargo lifts earnings per share 13% as loans and deposits grow 11%

Wells Fargo reported higher third-quarter earnings on Tuesday, 13 October. The figures below are from the bank’s release unless noted.

The numbers

• Net income: $6.0 billion (precisely $5.95 billion), or $1.87 per diluted share, up 13% per share from $1.66 a year earlier. Analysts expected $1.85, according to LSEG data reported by CNBC.
• Revenue: $21.9 billion, up 2%. Net interest income rose 5% to $12.5 billion; non-interest income slipped 1%.
• Balance sheet: average loans grew 11% to about $1.0 trillion and average deposits 11% to about $1.5 trillion.

Caveats

• Profit fell 7% from the second quarter, when the bank earned $6.4 billion.
• The provision for credit losses rose to $1.03 billion from $681 million a year earlier; net loan charge-offs were $983 million.
• The quarter’s tax rate of 16.4% included $170 million of one-off tax benefits.

Wells Fargo bought back $2.5 billion of its shares in the quarter; its CET1 capital ratio was 10.0%. CEO Charlie Scharf said the results “reflect broad-based growth, higher earnings, and stronger returns.”