Summary
Wells Fargo & Company (WFC) reported a net income of $4.61 billion for the third quarter of 2019, translating to $0.92 diluted earnings per common share. This represents a decrease from the $6.0 billion net income or $1.13 diluted EPS recorded in the same quarter of the prior year. The year-over-year decline was primarily influenced by a $1.6 billion discrete litigation accrual for retail sales practices matters, partially offset by a $1.1 billion gain from the sale of the Institutional Retirement and Trust (IRT) business. Total revenue increased slightly to $22.0 billion, driven by a $1.0 billion increase in noninterest income, which more than offset a $947 million decrease in net interest income. The company maintained a strong capital position, with its Common Equity Tier 1 (CET1) ratio at 11.61%, exceeding its internal target. Notably, Wells Fargo returned $9.0 billion to shareholders through dividends and share repurchases, marking the 17th consecutive quarter of returning over $3.0 billion.
Financial Highlights
38 data points| Revenue | $22.01B |
| Interest Expense | $4.87B |
| Net Income | $4.61B |
| EPS (Basic) | $0.93 |
| EPS (Diluted) | $0.92 |
| Shares Outstanding (Basic) | 4.36B |
| Shares Outstanding (Diluted) | 4.39B |
Key Highlights
- 1Net income decreased year-over-year to $4.61 billion ($0.92 diluted EPS), impacted by a $1.6 billion litigation accrual, partially offset by a $1.1 billion gain from the sale of the IRT business.
- 2Total revenue increased slightly to $22.0 billion, with noninterest income growth outpacing the decline in net interest income.
- 3Net interest margin declined to 2.66% from 2.94% a year ago, primarily due to balance sheet mix and repricing.
- 4Noninterest expense increased to $15.2 billion, largely driven by higher operating losses from litigation accruals.
- 5Credit quality remained solid, with net charge-offs at 0.27% (annualized) of average loans, down from 0.29% a year ago.
- 6Common Equity Tier 1 (CET1) ratio was strong at 11.61%, exceeding the company's target.
- 7Returned $9.0 billion to shareholders through common stock dividends and net share repurchases, continuing a trend of significant shareholder returns.