Wells Fargo reported earnings per share of 42 cents on $9.4 billion in interest income, whereas Wall Street was looking for 44 cents in earnings per share from $9.7 billion in net interest income.
The biggest winners of Thursday were bank stocks, which saw positive results across the board. Big Tech stocks, meanwhile, fell considerably.
After dropping yesterday, Wells Fargo (WFC) stock is up nearly 2.5% in the pre-market. Yesterday’s fall is attributed to the unexpected $2.4 billion loss reported in the second quarter.
Wells Fargo has changed the balance requirements for new clients to refinance a jumbo mortgage. This increases access difficulty.
In a recent market rally, bank stocks were the biggest winners. But as investors are worried about the uncertainty around how much the economic decline will affect loans, bank stocks will not rebound as fast as shares of other sectors.
Wells Fargo’s net income made up $653 million. Its diluted earnings per share (EPS) is just $0.01, while analysts predicted earnings of $0.33 per share. Wells Fargo also failed to surpass the $12.3 billion net interest income in the year-earlier period. This time, it totaled $11.3 billion.
According to the Federal Reserve, Wells Fargo will take part in the recently released programs without having the balance sheet count against the $1.95 trillion cap the bank has.