Wells Fargo (WFC) Reports Q1 EPS of $0.01, Revenue Misses; Credit Provisions Rise to $4B

Wells Fargo (NYSE: WFC) reported Q1 EPS of $0.01, may not compare to analyst estimate of $0.36. Revenue for the quarter came in at $17.7 billion versus the consensus estimate of $19.35 billion.

• Diluted EPS of $0.01 included a $(0.73) per share impact from a reserve build and an impairment of securities, driven by economic and market conditions, as well as a $(0.06) per share impact from the redemption of our Series K Preferred Stock
• Net income of $653 million and diluted earnings per share (EPS) of $0.01
  • ​Included the impact of a reserve build1 of $3.1 billion, or $(0.56) per share, and an impairment of securities of $950 million, or $(0.17) per share, driven by economic and market conditions
• ​​​Revenue of $17.7 billion, down from $21.6 billion in first quarter 2019
  • ​Net interest income of $11.3 billion, down $999 million
  • Noninterest income of $6.4 billion, down $2.9 billion
• ​Noninterest expense of $13.0 billion, down $868 million from first quarter 2019
• Average loans of $965.0 billion, up $15.0 billion, or 2%, from first quarter 2019; period-end loans of $1.0 trillion up $47.6 billion, or 5%, from fourth quarter 2019
• Average deposits of $1.3 trillion, up $75.9 billion, or 6%, from first quarter 2019; period-end deposits of $1.4 trillion up $53.9 billion, or 4%, from fourth quarter 2019

Credit quality:

• Provision expense for loans and debt securities of $4.0 billion, up $3.2 billion from first quarter 2019
  • Net charge-offs on loans and debt securities of $940 million, up $245 million
    • Net loan charge-offs of 0.38% of average loans (annualized), up from 0.30%
  • Reserve build1 of $3.1 billion for loans and debt securities
  • Nonaccrual loans of $6.2 billion, down $749 million, or 11%

For earnings history and earnings-related data on Wells Fargo (WFC) click here.

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