Wells Fargo (WFC) reported mixed second-quarter results results on Friday, with sales improving slightly but net income moving in the opposite direction.
Net income weakened 2% to $5.6 billion, or $1.01 a share, from $5.7 billion, or $1.03, a year earlier. Meanwhile, revenue increased 2% to $22.16 billion. These results met analysts’ estimates, according to Bloomberg.
“Wells Fargo’s second-quarter results demonstrated our ability to generate consistent performance during periods of economic, capital markets and interest rate uncertainty,” Chairman and CEO John Stumpf said in a statement that accompanied the bank’s earnings announcement. “Compared with a year ago, we had solid growth in loans, deposits and customers, which are our fundamental drivers of long-term value.”
With energy loans under pressure, the bank’s provisions for credit losses more than tripled to $1.07 billion from a year earlier. Net write-offs rose about 40% to $924 million, while net interest income (including the loan-loss provision) fell close to 3% to $10.7 billion.
The Wealth and Investment Management unit, which includes Wells Fargo Advisors, had a slight decrease in total revenue, which was $3.92 billion in the second quarter vs. $3.98 billion a year ago The bank says this decline was related to lower asset-based fees and brokerage transaction revenue.