Wells Fargo (WFC) reported fourth-quarter earnings today, which caused shares to trade almost 2% lower in early New York trading on Friday.
Earnings per share were 86 cents, while the analyst estimate stood at $0.97. The revenue for the quarter was $20.48 billion, surpassing the consensus estimate of $20.36 billion.
Chief Executive Officer Charlie Scharf commented, “Although our improved 2023 results benefited from the strong economic environment and higher interest rates, our continued focus on efficiency and strong credit discipline were important contributors as well.”
Total average loans for the fourth quarter met the average analyst estimate at $938.0 billion. The efficiency ratio was 77%, higher than the estimated 67%.
The return on equity was 7.6%, falling short of the estimated 8.6%. On the other hand, the common equity Tier 1 ratio was reported at 11.4%, surpassing the estimated 10.9%.
Non-interest expenses amounted to $15.79 billion, exceeding the estimate of $14.4 billion, with personnel expenses at $9.18 billion against the estimated $8.93 billion.
The bank said it sees 2024 net interest income (NII) to be potentially lower by 7-9% compared to 2023. Last year, Wells Fargo's NII stood at $52.38 billion.