Wells Fargo (WFC) reported first-quarter revenue that beat analysts’ average estimate.
However, WFC shares fell about 2.5% in pre-open trading after the company reported softer-than-expected net interest income (NII) numbers.
Total revenue was $20.86 billion, beating the Bloomberg Consensus estimate of $20.18 billion. Earnings per share (EPS) were $1.20, well above the $1.07 expected.
Commercial banking revenue was $3.15 billion, slightly below estimates of $3.35 billion. Meanwhile, corporate and investment banking revenues performed well at $4.98 billion, beating estimates of $4.85 billion.
In the asset and investment management segment, total revenue reached $3.74 billion, in line with expectations. Total consumer banking and lending revenue reached $9.09 billion, below estimates of $9.41 billion.
However, net interest income was $12.23 billion, slightly below estimates of $12.32 billion.
The effectiveness rate was 69%, slightly higher than the 68% estimate. The net interest margin was 2.81%.
Total average deposits amounted to $1.34 trillion, also in line with expectations. Tier 1 common stock was 11.2%, and noninterest expense was $14.34 billion, above estimates of $13.91 billion.
Return on real common equity beat expectations, reaching 12.3% compared to estimates of 10.9%.