- Wells Fargo’s net interest income was $11.50 billion, missing the estimate of $11.81 billion.
- Total revenue came in at $20.15 billion, below the expected $20.73 billion.
- Commercial banking revenue reached $2.93 billion.
- Wealth and investment management revenue totaled $3.87 billion.
- Earnings per share (EPS) were reported at $1.39.
- The provision for credit losses was $932 million, better than the anticipated $1.22 billion.
- Non-interest expenses amounted to $13.89 billion, slightly lower than the estimate of $14.03 billion.
- Net charge-offs were $1.01 billion.
- The net interest margin was reported at 2.67%, compared to an estimate of 2.72%.
- Total average loans were $908.2 billion, missing the $909.7 billion estimate.
- Total average deposits stood at $1.34 trillion, below the expected $1.36 trillion.
- Non-performing assets were $8.23 billion, slightly higher than the estimate of $8.03 billion.
- Wells Fargo’s efficiency ratio was 69%, higher than the anticipated 67.7%.
- Return on assets was reported at 1.03%.
- Return on equity surpassed estimates, reaching 11.5% against an expected 10.1%.
- The Common Equity Tier 1 ratio remained steady at 11.1% as estimated.
- Return on tangible common equity was 13.6%, exceeding the estimate of 12.3%.
- Mortgage banking non-interest income was $332 million, above the expected $266.2 million.
- Analyst recommendations: 19 buys, 9 holds, and no sells.
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Wells Fargo & Co on Smartkarma
Analyst coverage of Wells Fargo & Co on Smartkarma highlights insights from Baptista Research. In their report titled “Wells Fargo’s Epic Tech-Driven Revolution: The Surprising Power Move to Slash Costs & Dominate Markets! – Major Drivers,” the analyst commended Wells Fargo & Company for notable progress in the fourth quarter of 2024. The report emphasizes the firm’s strengthened earnings profiles, risk control achievements, and strategic resilience in meeting operational objectives amidst changing market conditions. Wells Fargo’s expansion in net income and fee-based revenue, along with an 11% increase in diluted earnings per share from the previous year, were identified as positive developments.
A look at Wells Fargo & Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Wells Fargo & Co is positioned for a promising long-term future. With a strong score in value, the company is deemed to be attractively priced in the market. Additionally, its momentum score suggests positive price trends and investor sentiment. While the dividend and growth scores are moderate, indicating room for improvement, Wells Fargo & Co‘s diversified financial services offerings position it well for steady growth.
Despite facing challenges in resilience, as indicated by the score of 2, Wells Fargo & Co‘s overall performance across various factors bodes well for its future prospects. The company’s extensive presence in banking, insurance, investments, and other financial services, both online and offline, provides a solid foundation for sustained growth in North America and international markets.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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