Summary
Wells Fargo & Company reported a strong second quarter of 2019, with net income of $6.2 billion, or $1.30 per diluted share, up from $5.2 billion, or $0.98 per diluted share, in the prior year. Total revenue remained stable year-over-year at $21.6 billion, driven by a $477 million increase in noninterest income offsetting a $446 million decrease in net interest income. The company saw a 4% decrease in noninterest expense to $13.4 billion, primarily due to lower remediation and FDIC assessment expenses. Profitability ratios, including ROA and ROE, improved compared to the prior year. Capital ratios remained strong, with the Common Equity Tier 1 ratio at 11.97%, well above the company's internal target. Wells Fargo successfully reduced its common shares outstanding through buybacks and returned $6.1 billion to shareholders via dividends and net share repurchases, a 52% increase from the previous year's second quarter.
Financial Highlights
37 data points| Revenue | $21.58B |
| Interest Expense | $4.89B |
| Net Income | $6.21B |
| EPS (Basic) | $1.31 |
| EPS (Diluted) | $1.30 |
| Shares Outstanding (Basic) | 4.47B |
| Shares Outstanding (Diluted) | 4.50B |
Key Highlights
- 1Net income increased to $6.2 billion ($1.30 diluted EPS) from $5.2 billion ($0.98 diluted EPS) in Q2 2018.
- 2Total revenue remained flat at $21.6 billion, with noninterest income rising and net interest income declining.
- 3Noninterest expense decreased by 4% to $13.4 billion, driven by lower operating losses and regulatory costs.
- 4Profitability metrics like ROA (1.31%) and ROE (13.26%) showed significant improvement year-over-year.
- 5Common Equity Tier 1 (CET1) ratio remained strong at 11.97%, exceeding the company's target.
- 6Total capital returned to shareholders via dividends and share repurchases was $6.1 billion, a 52% increase from Q2 2018.
- 7The company continued to reduce its outstanding common shares through repurchases, demonstrating a commitment to shareholder returns.