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January 15, 2021 at 02:13 PM
(Photo: Bloomberg)
Wells Fargo topped estimates with net income of $2.99 billion, or $0.64 per share, for the fourth quarter of 2020, a 4% rise from $2.87 billion, or $0.60 cents per share, a year earlier.
Revenue, though, fell by 10% to $17.93 billion in the quarter from $19.86 billion a year earlier and missed estimates.
The firm also released new figures on the performance of its Wealth and Investment Management business, including the average level of yearly revenue per financial advisor. These figures have been shared quarterly by other wirehouses, such as Morgan Stanley and Merrill, for some time.
“Although our financial performance improved and we earned $3 billion in the fourth quarter, our results continued to be impacted by the unprecedented operating environment and the required work to put our substantial legacy issues behind us,” CEO Charlie Scharf said in a statement.
While consumer and small-business banking revenue dropped 8% to $4.70 billion from the year-ago quarter, home loans rose 2% to about $2 billion. Non-performing assets, though, jumped 9% to $8.89 billion from the year-ago level of $5.65 billion.
Net charge-offs were $584 million. In addition, the bank’s earnings included a $781 million restructuring charge and a $757 million reserve release tied to the sale of its student loan portfolio.
Wells Fargo’s board has approved an increase in its authority to buy back common stock by an additional 500 million shares, which puts its total authorized amount at 667 million shares.
