Wells Fargo & Co. on Friday beat analysts’ estimates for fourth-quarter profit as a rebound in U.S. economic growth encouraged more customers to take loans and the bank kept a tight lid on costs. Profit jumped 86 percent to $5.8 billion, or $1.38 per share, flattered by a $943 million gain from the sale of some businesses and an $875 million reserve release from pandemic-related losses that did not materialize. Average loans were down 3 percent from the fourth quarter last year, although the bank noted that loans ticked up in the last six weeks of 2021. “Period-end” loans rose 1 percent from the same time last year, and were up 4 percent from the third quarter. “The strong economy continues to positively impact our customers and our results,” Chief Executive Officer Charlie Scharf said on a call with analysts. The bank’s shares were up 3.2 percent in afternoon trade …
Wells Fargo Beats Profit Estimates on Uptick in Loan Demand, Cost Cuts
January 16, 2022
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