• Wells Fargo’s total average loans for the fourth quarter stood at $938.0 billion, closely meeting the estimated $941.97 billion.
• The company reported an Earnings Per Share (EPS) of 86c.
• The efficiency ratio was 77%, higher than the estimated 67%.
• Mortgage banking non-interest income was $202 million, surpassing the estimated $165.5 million.
• Wells Fargo’s revenue was $20.48 billion, slightly over the estimated $20.35 billion.
• Commercial banking revenue was $3.37 billion, beating the estimated $3.29 billion.
• Corporate and investment banking revenue was $4.74 billion, higher than the estimated $4.32 billion.
• Total average deposits were $1.34 trillion, just shy of the estimated $1.35 trillion.
• The return on assets was 0.72% and the return on equity was 7.6%, less than the estimated 8.57%.
• The common equity Tier 1 ratio was 11.4%, above the estimated 10.9%.
• Non-interest expenses were $15.79 billion, more than the estimated $14.4 billion.
• The return on tangible common equity was 9%, less than the estimated 9.59%.
• Consumer banking and lending total revenue was $9.52 billion, surpassing the estimated $9.4 billion.
• The provision for credit losses was $1.28 billion, less than the estimated $1.32 billion.
• Personnel expenses were $9.18 billion, higher than the estimated $8.93 billion.
• Wells Fargo received 18 buys, 13 holds, and 0 sells.
Wells Fargo & Co on Smartkarma
Wells Fargo & Co, a major US banking and financial services company, has recently been covered by independent analysts on Smartkarma. According to a report by Daniel Tabbush, the company’s net interest income has slowed down significantly and could even turn negative in the fourth quarter of 2023. This is a cause for concern as it could impact the company’s overall profitability. The report also highlights that the company’s net interest margin, a key measure of profitability, has decreased by 17 basis points in the past six months. Additionally, the report mentions a significant increase in the company’s commercial real estate non-accrual loans, which have risen by 54% quarter-on-quarter and 4.5 times year-on-year.
The report also sheds light on the company’s loan portfolio, with a decline in mortgage, auto, and commercial real estate loans both quarter-on-quarter and year-on-year. In fact, total gross loans have declined by USD5.5 billion in the third quarter of 2023, and the company’s largest loan category, C&I loans, has also decreased by 0.9% quarter-on-quarter. This decline in loans could potentially impact the company’s revenue and profitability in the coming quarters. With these developments, it will be interesting to see how Wells Fargo & Co navigates through the challenging market conditions and maintains its position as a leading player in the banking industry.
A look at Wells Fargo & Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.0 |
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
Wells Fargo & Co is a well-known financial services company that offers a wide range of products and services such as banking, insurance, investments, and more. With a strong presence in North America and other parts of the world, the company has established itself as a key player in the industry. Utilizing the Smartkarma Smart Scores, which rates companies on a scale of 1-5, the long-term outlook for Wells Fargo & Co looks promising. The company scores high in areas such as growth and momentum, indicating positive future prospects.
One of the key factors contributing to the positive outlook for Wells Fargo & Co is its strong value and growth potential. The company has received a score of 4 in value and 5 in growth, indicating a solid financial standing and potential for future growth. Additionally, the company has also shown resilience in the face of challenges, scoring a 3 in that category. This, coupled with a decent dividend score of 3, makes Wells Fargo & Co a promising investment option for those looking for long-term stability and growth in the financial services sector.
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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