Wells Fargo Slips To Loss In Q2; To Cut Dividend – Quick Facts
Wells Fargo & Co. (WFC) reported Tuesday that its net loss applicable to common stock for second quarter was $2.69 billion or $0.66 per share, compared to net income of $5.85 billion or $1.30 per share last year.
The latest quarter’s results include an $8.4 billion increase in the credit loss reserve, driven by current and forecasted economic conditions. It also includes $1.2 billion of operating losses, primarily due to customer remediation accruals.
On average, analysts polled by Thomson Reuters expected the company to report loss of $0.20 per share for the first-quarter. Analysts’ estimates typically exclude special items.
Revenue for the quarter declined to $17.84 billion from $21.58 billion in the prior year. Analysts expected revenues of $18.4 billion.
Net interest income was $9.88 billion, down 18 percent from $12.10 billion in the year-ago quarter. Non-interest income declined 16 percent to $7.96 billion from $9.49 billion in the previous-year quarter.
Wells Fargo also said it expects to reduce its third-quarter common stock dividend to $0.10 per share from $0.51 per share, subject to approval by its board of directors at the customary time at the end of July.
In June, the Federal Reserve Board or FRB released the results of the 2020 Dodd-Frank stress test and related Comprehensive Capital Analysis and Review or CCAR. Wells Fargo expects its stress capital buffer or SCB to be 2.5 percent, which is the lowest possible SCB.
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