Wells Fargo (WFC) reported first-quarter revenue that surpassed the average analyst estimate.
However, WFC stock fell about 2.5% in pre-open trade after the company reported softer-than-expected net interest income (NII) numbers.
Total revenue amounted to $20.86 billion, exceeding the Bloomberg Consensus estimate of $20.18 billion. Earnings per share (EPS) stood at $1.20, easily ahead of the expected $1.07.
Commercial banking revenue came in at $3.15 billion, slightly below the estimate of $3.35 billion. Meanwhile, corporate and investment banking revenue performed well, generating $4.98 billion, surpassing the estimate of $4.85 billion.
In the wealth & investment management segment, total revenue reached $3.74 billion, in line with expectations. Consumer banking and lending total revenue reached $9.09 billion, below the estimate of $9.41 billion.
However, net interest income was reported at $12.23 billion, slightly below the estimate of $12.32 billion.
The efficiency ratio was reported at 69%, slightly above the estimate of 68%. The net interest margin was reported at 2.81%.
Total average deposits amounted to $1.34 trillion, also in line with expectations. The common equity Tier 1 ratio was reported at 11.2% while non-interest expenses totaled $14.34 billion, above the estimate of $13.91 billion.
Return on tangible common equity exceeded expectations, reaching 12.3%, compared to the estimate of 10.9%.