Wells Fargo & Co. (NYSE: WFC) released its second-quarter financial results before the markets opened on Friday. The company said that it had $0.98 in earnings per share (EPS) and $21.6 billion in revenue, while consensus estimates had called for $1.12 in EPS on revenue of $21.68 billion. The same period of last year reportedly had EPS of $1.08 and $22.17 billion in revenue.
Total average loans were $944.1 billion in the second quarter, down $6.9 billion from the first quarter. Period-end loan balances were $944.3 billion, down $3.0 billion from the first quarter. Commercial loans were down $291 million sequentially, with a $2.5 billion decline in commercial real estate loans, partially offset by $1.9 billion of growth in commercial and industrial loans and a $321 million increase in lease financing loans. Consumer loans decreased $2.8 billion.
Total average deposits for second quarter 2018 were $1.3 trillion, down $25.8 billion from the prior quarter. Average consumer and small business banking deposits of $754.0 billion for second quarter 2018 were down $1.4 billion from the prior quarter.
At the end of the quarter, the company had a book value per common share of $37.41 and a tangible book value per common share of $31.47.
The bank did not offer any guidance for the coming quarter, but consensus estimates from Thomson Reuters call for $1.18 in EPS and $21.82 billion in revenue.
Tim Sloan, CEO of Wells Fargo, commented:
During the second quarter we continued to transform Wells Fargo into a better, stronger company for our customers, team members, communities and shareholders. Our progress included making further improvements to our compliance and operational risk management programs; hiring a new Chief Risk Officer; announcing innovative new products including a digital application for Merchant Services customers and our enhanced Propel Card, one of the richest no-annual-fee credit cards in the industry; launching our ‘Reestablished’ marketing effort, the largest advertising campaign in our history; announcing a new $200 billion commitment to financing sustainable businesses and projects; and continuing to move forward on our expense savings initiatives.
Shares of Wells Fargo closed Thursday at $56.03, with a consensus analyst price target of $61.57 and a 52-week range of $49.27 to $66.31. Following the announcement, the stock was down about 3% at $54.36 in early trading indications Friday.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
