Wells Fargo WFC Q2 2024 Earnings

Wells Fargo reported a 9% decline in net interest income on Friday, even as second-quarter earnings and revenue exceeded Wall Street expectations.

Here’s what the bank did compared to Wall Street estimates, based on a survey of analysts by LSEG:

• Profit per share: $1.33 versus $1.29 cents expected
• Gain: $20.69 billion versus $20.29 billion expected

The San Francisco-based lender posted $11.92 billion in net interest income, a key measure of what a bank makes on lending, down 9% year over year. That was less than the $12.12 billion that analysts had expected, according to FactSet. The bank said the decline was due to the impact of higher interest rates on financing costs.

Shares of Wells Fargo fell nearly 7% in Friday trading.

“We continued to see growth in our fee-based revenues, which offset an expected decline in net interest income,” CEO Charlie Scharf said in a statement. “The investments we made allowed us to benefit from market activity in the quarter, with strong performance in investment advisory, trading and investment banking fees.”

Wells Fargo saw net income fall to $4.91 billion, or $1.33 per share, in the second quarter, compared to $4.94 billion, or $1.25 per share, in the same quarter a year ago. The bank set aside $1.24 billion as a provision for credit losses, including a modest reduction in the provision for those losses. Revenue rose to $20.69 billion in the quarter.

The bank has repurchased more than $12 billion of common stock in the first half of 2024 and expects to increase its third-quarter dividend by 14%.

The stock is up more than 22% this year, outperforming the S&P 500.