Wells Fargo & Co.’s Q1 profit plunged 21% but surpassed Wall Street estimates as CEO Scharf plans to rein in costs, according to a news release by Wells Fargo on Thursday.
- The lender posted a profit of $3.7 billion or 88 cents per share in Q1 compared to $4.64 billion, or $1.02 per share, a year ago.
- The bank’s average loans expanded 3% in the quarter, largely attributable to credit card and auto lending.
- Meanwhile, mortgage loans dropped 33% from a year ago on lower originations as Fed hiked rates to control rising inflation.
- Non-interest expenses dropped 1% attributable to lower personal and divestitures, in line with Scharf’s plan to turn around the bank and save nearly $10B annually over the longer term.
Net interest income jumped 5% during the quarter, attributable to higher loan balances and a decline in long-term debt. WFC down -3.79%, JPM up +0.16%, Pre-market trading