Aside from the Great Recession and the bank failures of last year, few issues in the recent banking era have been more scandalous than Wells Fargo's (WFC 0.04%) infamous phony-accounts scandal. Employees at the bank opened millions of credit card and bank accounts without customers' consent. Since that scandal came to light in 2016, Wells Fargo has dealt with consent orders, paid billions in fines, and done its best to overcome a reputational nightmare. But the bank has not shed a Federal Reserve-imposed as ...

Wells Fargo & Company (NYSE:WFC) BancAnalysts Association of Boston Conference Call November 7, 2024 8:10 AM ET Company Participants Mike Santomassimo - Chief Financial Officer Conference Call Participants Gerard Cassidy - RBC Capital Markets Gerard Cassidy Good morning, everyone. I’m Gerard Cassidy, President of the BancAnalysts Association of Boston. And on behalf of the Board of Directors, I want to welcome everybody to our 43rd annual conference here. And for some of the folks that have been around for ...

Shares of major banks climbed in overnight trading as investors expected Donald Trump's victory in the presidential election.Citigroup jumped about 5% in special late trading on the Robinhood brokerage for well-known stocks. Bank of America added more than 3%, while Wells Fargo and Goldman Sachs each popped more than 2%.These moves come as traders followed results trickling out on the race for the White House. Former President Donald Trump is currently leading by NBC News' count, though several key states h ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-2979 WELLS FARGO & COMPANY (Exact name of registrant as specified in its charter) Delaware No. 41-0449 ...

Core Viewpoint - Wells Fargo & Company reported a solid Q3 2024 earnings report, beating analyst EPS expectations by 14 cents, despite a 2.4% YoY revenue decline, which missed consensus estimates [1][6] Financial Performance - The company reported Q3 2024 EPS of $1.42, exceeding consensus estimates by 14 cents, while revenues fell 2.4% YoY to $20.37 billion, just shy of the expected $20.4 billion [6] - Net interest income declined for the seventh consecutive quarter, with an 11% YoY drop to $11.7 billion, attributed to high funding costs and customer migrations to higher-yielding deposit products [2][3] - Non-interest expenses remained flat YoY, with total net loan charge-offs dropping by 15% YoY, indicating solid credit quality [3] Revenue Sources - Fee-based income rose 16% YoY during the first nine months of 2024, driven by strong performance in Wealth and Investment Management services and FICC trading fees [3] - The Corporate & Investment Banking segment, which generates 24% of total revenue, remained flat YoY, while FICC trading fees helped Markets revenue climb 6% YoY to $1.75 billion [6] Loan Activity and Market Conditions - Average loan balances fell 3% YoY to $32.9 billion, primarily due to sluggish loan activity from high interest rates, impacting the Consumer Banking and Lending segment, which accounts for 45% of total revenue [4][5] - Home lending revenue rose 2% YoY, while auto lending fell sharply by 24% YoY as consumer spending softened [5] Future Outlook - The company adjusted its full-year net interest income decline guidance to around 9%, up from the previous forecast of 7% to 9% [5] - The interest rate cut cycle is expected to improve lending activity as consumers resume borrowing at lower financing costs [5] Stock Performance - Following the earnings report, Wells Fargo's stock experienced a 10% rally, allowing it to catch up to the performance of peer money center banks [1] - The stock trades at 12.57x forward earnings, with an average consensus price target of $61.82 and a highest analyst price target of $71.00 [8]

Group 1 - The CEO of Wells Fargo, Charlie Scharf, expressed a positive outlook on the consumer landscape, stating that consumer resilience is strong and spending is increasing at a measured pace [1] - Deposit balances at Wells Fargo remain robust, and credit quality is performing extremely well, indicating a healthy financial environment [1] - The most recent quarterly results exceeded Wall Street expectations, leading to a more than 4% surge in shares following the report, despite a decline in net interest income [1] Group 2 - Scharf noted that while quarterly results are important, the market tends to react more strongly to these reports than the management does, as evidenced by the stock's fluctuations [2] - The CEO maintained a neutral stance regarding the potential impact of the upcoming presidential election on business, expressing willingness to work with both candidates [2]

Group 1 - US bank branches were closed on Columbus Day, indicating a temporary halt in banking operations [1] - This week is significant for money center banks like Citigroup and Bank of America, as they are expected to release important financial information [1] Group 2 - The focus is on providing insightful analysis on leading financial firms to identify investment opportunities and risks [1] - Preference is given to stocks that exhibit both growth potential and strong financial statements, indicating a dual focus on growth and quality [1]

Group 1 - Goldman Sachs reported third-quarter earnings that exceeded analysts' expectations, continuing a trend of strong earnings among major banks [1][2] - The company achieved total revenue of $12.7 billion, surpassing the $11.82 billion reported in the same quarter last year and exceeding analysts' consensus [1] - Net interest income (NII) was reported at $2.62 billion, significantly up from $1.55 billion a year ago and better than the projected $1.95 billion [1] - Profits for Goldman Sachs reached nearly $3 billion, which is approximately half a billion more than analysts expected and an increase from $2.06 billion in the third quarter of 2023 [1] Group 2 - The financial sector has seen positive results, with Goldman Sachs reporting alongside Bank of America, which also surpassed estimates [2] - The recent earnings come after the Federal Reserve's first interest rate cut in four years, which analysts believe could enhance future bank earnings by reducing deposit costs and encouraging mergers and acquisitions [2] - Goldman Sachs shares have increased over 35% year-to-date through Monday's close [2]

Group 1 - Goldman Sachs reported third-quarter earnings that exceeded analysts' expectations, continuing a trend of strong earnings among major banks [1][2] - The firm achieved total revenue of $12.7 billion, surpassing the $11.82 billion reported in the same quarter last year and exceeding analysts' consensus [1] - Net interest income (NII) was $2.62 billion, significantly up from $1.55 billion a year ago and better than the projected $1.95 billion [1] - Profits for Goldman Sachs reached nearly $3 billion, which is approximately half a billion more than analysts expected and an increase from $2.06 billion in the third quarter of 2023 [1] Group 2 - Goldman Sachs' earnings report coincided with Bank of America, which also surpassed estimates, and followed strong results from JPMorgan Chase and Wells Fargo [2] - The financial sector's positive results come after the Federal Reserve's first interest rate cut in four years, which analysts believe could enhance future bank earnings by reducing deposit costs and encouraging mergers and acquisitions [2] - Goldman Sachs shares have increased over 35% year-to-date through Monday's close [2]

Core Insights - Wells Fargo reported a GAAP EPS of $1.42 for Q3, exceeding the consensus estimate of $1.28, while revenue decreased by 2% to $20.37 billion, slightly below the expected $20.41 billion [1][2] Group 1: Earnings Performance - The company achieved better-than-expected earnings with a GAAP EPS of $1.42, surpassing the consensus of $1.28 [1] - Revenue fell by 2% to $20.37 billion, compared to analysts' expectations of $20.41 billion [1] Group 2: Strategic Changes and Future Outlook - CEO Charlie Scharf highlighted a shift in the earnings profile over the past five years, emphasizing strategic investments and a more diverse revenue base, with fee-based revenue growing by 16% in the first nine months of the year [2] - For fiscal year 2024, Wells Fargo anticipates a net interest income decline of approximately 9% from the 2023 level of $52.4 billion, which is a revision from the previous guidance of a 7% to 9% decrease [2] Group 3: Stock Performance and Analyst Ratings - Following the earnings announcement, Wells Fargo shares increased by 2.6%, trading at $62.54 [2] - Analysts adjusted their price targets, with Evercore ISI Group raising it from $68 to $71, Piper Sandler from $60 to $62, and RBC Capital maintaining a $61 target [2] - The consensus price target for Wells Fargo is $61.42 based on ratings from 22 analysts, with a high of $68 and a low of $48 [3]