Wells Fargo stock was declining on Friday following the bank’s report of a higher provision for credit losses in the fourth quarter and a warning of lower net interest income in the coming year.
The bank’s provision for credit losses amounted to $1.28 billion, compared to $957 million in the same period last year. This increase was driven by higher allowances for credit losses on credit cards and commercial real estate loans.
CEO Charlie Scharf stated that Wells Fargo has observed a slight deterioration in credit, which it is closely monitoring. However, the bank’s new credit card products have outperformed the industry average in terms of increasing consumer spending, thereby improving market share.
The company’s corporate and investment banking segment performed particularly well, with revenue rising by 26% to $4.74 billion compared to the previous year.
Net interest income, which represents the profit banks generate from interest-earning assets such as loans and mortgages, amounted to $12.77 billion. This slightly exceeded Wall Street’s expectations of $12.76…
2024-01-12 10:34:04
Article from www.barrons.com
rnrn
