Summary
Wells Fargo & Company (WFC) reported solid financial results for the third quarter of 2015, demonstrating its diversified business model's resilience. Net income applicable to common stock rose slightly to $5.44 billion from $5.41 billion in the prior year's third quarter, and diluted earnings per share increased by 3% to $1.05 from $1.02 year-over-year. Total revenue grew 3% to $21.88 billion, driven by a 5% increase in net interest income, reflecting growth in earning assets including investment securities and loans. The company maintained strong capital levels, with its Common Equity Tier 1 ratio under Basel III increasing to 10.87%. Loan growth was robust, with total loans reaching a record $903.2 billion, up 8% year-over-year, bolstered by a 9% increase in the core loan portfolio. Deposits also saw healthy growth, reaching a record $1.2 trillion, up 6% year-over-year, supported by strong customer acquisition in checking accounts. The company also announced strategic acquisitions of GE Capital's Commercial Distribution Finance and Vendor Finance platforms, expected to close in early 2016. Credit quality remained strong, with net charge-offs at historically low levels. While the provision for credit losses increased year-over-year due to an increase in commercial allowance for deterioration in the energy sector, consumer credit losses declined. The efficiency ratio improved to 56.7% from 57.7% in the prior year, indicating effective cost management. The company continued its commitment to returning capital to shareholders, repurchasing approximately $2.9 billion of common stock and paying $1.1 billion in dividends during the quarter, with a payout ratio of 60%.
Financial Highlights
35 data points| Interest Expense | $988.00M |
| Net Income | $5.80B |
| EPS (Basic) | $1.06 |
| EPS (Diluted) | $1.05 |
| Shares Outstanding (Basic) | 5.13B |
| Shares Outstanding (Diluted) | 5.19B |
Key Highlights
- 1Net income applicable to common stock increased to $5.44 billion, or $1.05 per diluted share, up from $5.41 billion, or $1.02 per diluted share, in the third quarter of 2014.
- 2Total revenue grew 3% year-over-year to $21.88 billion, driven by a 5% increase in net interest income.
- 3Total loans reached a record $903.2 billion, up 8% from the prior year, with the core loan portfolio growing by 9%.
- 4Total deposits grew 6% year-over-year to $1.2 trillion, demonstrating continued strength in the deposit franchise.
- 5Credit quality remained solid with historically low net charge-offs, although an increased provision for credit losses reflected deterioration in the energy sector.
- 6The efficiency ratio improved to 56.7% from 57.7% in the prior year's third quarter.
- 7Wells Fargo announced agreements to acquire GE Capital's Commercial Distribution Finance and Vendor Finance platforms, along with a portion of its Corporate Finance business, expected to close in early 2016.