Wells Fargo Registers 17% Increase in Q1 Total Revenue to $20.73 Bn

Wells Fargo & Co's profit surpassed expectations for the first quarter on Friday as it earned more from higher interest rates, even while executives forecast tighter monetary policy would dampen economic activity.

The bank also reported a $643 million increase in the allowance for credit losses, including for loans on commercial real estate, credit cards and cars.

The bank's shares edged 0.4% higher on Friday afternoon. They had risen more than 4% in premarket trading after the results beat expectations.

Deposits at Wells Fargo fell 2% to $1.36 trillion at the end of March, compared with $1.38 trillion at the end of last year.

Net-interest income surged 45% from the same quarter a year ago, to $13.34 billion.

The bank earned $1.23 per share, excluding one-time items, for the quarter ended March 31. That compared with analysts' average estimate of $1.13 per share, according to Refinitiv IBES data.

Wells Fargo is also still working to contain the fallout from a scandal over its sales practices that led to hefty fines and an asset cap imposed by the Fed.

Overall, non-interest expenses fell to $13.68 billion from $13.85 billion a year earlier, mainly driven by lower operating losses.

In the fourth quarter of 2022, the bank had posted $3.3 billion in operating losses related to lawsuits, customer remediation and regulatory matters linked to the scandal.

Wells Fargo's total revenue rose 17% to $20.73 billion in the first quarter.

(Source: Reuters)