Wells Fargo(US:WFC)2024-07-14 07:31Investment Rating - The report does not explicitly state an investment rating for Wells Fargo & Co (WFC US) [1]. Core Insights - Wells Fargo reported Q2 2024 earnings with revenue growth of +0.8% year-over-year, surpassing Bloomberg consensus forecast of -1.2% [2][5]. - Net interest income (NII) decreased by -9.4% year-over-year, which was better than the consensus estimate of -7.9% [2][4]. - Non-interest income increased by +18.9% year-over-year, exceeding the consensus estimate of +10.7% [2][4]. - The net profit attributable to common stockholders decreased by -0.4% year-over-year, which was better than the consensus estimate of -1.5% [2][4]. - The efficiency ratio improved to 64.0%, better than the consensus estimate of 64.3% [2][4]. Summary by Relevant Sections Revenue and Profit - Total revenue for Q2 2024 was $20,689 million, beating the estimate of $20,281 million [4]. - Consumer Banking and Lending revenue decreased by -4.7% year-over-year, while Corporate and Investment Banking revenue increased by +4.5% [2][4]. - Wealth and Investment Management revenue grew by +5.8% year-over-year, outperforming the consensus [2][4]. Net Interest Income and Non-Performing Loans - NIM (Net Interest Margin) decreased by 6 basis points to 2.75%, below the consensus estimate of 2.77% [2][4]. - Total loans decreased by -3.2% year-over-year, better than the consensus estimate of -13.3% [2][4]. - The non-performing loan (NPL) ratio increased to 0.94%, higher than the consensus estimate of 0.90% [2][4]. Capital Ratios and Returns - The CET1 (Common Equity Tier 1) ratio increased by 0.3 percentage points to 11.0%, exceeding the consensus estimate of 10.7% [2][4]. - ROTCE (Return on Tangible Common Equity) remained stable at 13.7%, better than the consensus estimate of 13.2% [2][4]. - ROA (Return on Assets) decreased slightly to 1.03%, outperforming the consensus estimate of 1.00% [2][4]. - ROE (Return on Equity) increased by 0.10 percentage points to 11.5%, better than the consensus estimate of 11.2% [2][4].