Wells Fargo reports Q2 EPS of $0.98, down 9%

Business 7/13/2018, 2:04 PM
Wells Fargo reports Q2 EPS of $0.98, down 9%

The American banking giant Wells Fargo announced on Friday it earned $0.98 per diluted share in the second quarter of 2018, including a net discrete income tax expense of $0.10 per share. The figure marks a decrease of 9% compared to the same quarter of 2017 when the company earned $1.08 per share. The bank's net income amounted to $5.2 billion, down 11% year-on-year.

Meanwhile, the company's revenue dropped a little more than 2% from the same three month period last year to arrive at $21.6 billion. Of that, net interest income rose 1% to $12.5 billion, while the noninterest income dropped 8% to $9 billion. Meanwhile, return on assets (ROA) was reported at 1.1%, while return on equity (ROE) stood at 10.6%.

"During the second quarter we continued to transform Wells Fargo into a better, stronger company for our customers, team members, communities and shareholders. Our progress included making further improvements to our compliance and operational risk management programs," Chief Executive Officer Tim Sloan said. At the same time, bank's Chief Financial Officer John Shrewsberry said that "net interest income grew both linked quarter and year-over-year in the second quarter, credit performance and capital levels remained strong, and we are on track to meet our expense reduction expectations."

Wells Fargo's shares lost as much as 2.84% in the premarket trade following the publication of the earnings report.

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