Shares of Wells Fargo drops and profit falls as the bank sets aside funds for bad loans.
On Friday Wells Fargo said that second-quarter profit declined 48% from a year earlier as the bank set aside funds for bad loans.
In his statement, CEO Charlie Scharf said that he expected “credit losses to increase from these incredibly low levels” in the future.
– Earnings per share: 82 cents adjusted vs 80 cents expected.
– Revenue: $17.03 billion vs $17.53 billion expected.
In a statement, The bank said that Profit of $3.12 billion, or 74 cents per share, fell sharply compared with $6.04 billion, or $1.38, a year earlier.
Company Shares jumped 6.6%, a sharp rebound from declines in premarket trading.
The Bank said “market conditions” forced it to post a $576 million second-quarter impairment on equity securities tied to its venture capital business.
Notably, the bank’s revenue fell 16% to $17.03 billion in the quarter, roughly half a billion dollars below analysts’ expectation.