Wells Fargo misses on revenue and profit despite dividend increase
Revenue $21.87B vs $22.61B expected, and EPS $1.87 came in a cent short
Published
Chart: WFC, one-minute prices, three sessions
Wells Fargo reported third-quarter earnings per share of $1.87, a cent below expectations, and revenue of $21.87B against a forecast of $22.61B.
Chairman and CEO Charlie Scharf said the results reflected broad-based growth across segments, with return on tangible common equity rising to 16.3% as revenue growth outpaced expense increases despite economic uncertainty.
The bank repurchased 28.6 million shares of common stock, worth $2.5B, during the quarter and raised its quarterly dividend to $0.50 per share from $0.45.
The revenue miss sits awkwardly against the tone CFO Santomassimo struck last month, when he pointed to strong economic activity, stable delinquencies and a possible net interest margin beat. The shortfall, even a cent on earnings, lands as Wells Fargo faces scrutiny on two fronts: a New York Fed review of its private credit exposure and a regulator probe into its Black homeownership program. The bigger buyback and higher dividend show management still has capital flexibility, but the top-line miss comes at a moment when the bank has less room to absorb added regulatory friction without it showing up in how investors read the quarter.