Wells Fargo(US:WFC)2024-10-12 00:37Investment Rating - The report does not explicitly state an investment rating for Wells Fargo & Co (WFC US) but indicates a mixed performance with some areas exceeding expectations and others falling short [1][5]. Core Insights - Wells Fargo's Q3 2024 revenue growth was -2.4% year-over-year, slightly worse than the Bloomberg consensus forecast of -2.2%. However, net profit attributable to common stockholders decreased by -11.0% year-over-year, which was better than the expected -19.4% [1][4]. - Net interest income (NII) was reported at $11.69 billion, down -10.8% year-over-year, which was below the consensus expectation of -9.4%. Non-interest income, however, increased by +11.9% year-over-year, surpassing the expected +9.4% [1][4]. - The cost-to-income ratio improved to 64.0%, better than the expected 64.9% [1][4]. Summary by Relevant Sections Revenue and Profitability - Total revenue for Q3 2024 was $20.366 billion, with a year-over-year decline of -2.4% [4]. - Net profit attributable to common shareholders was $4.852 billion, reflecting a year-over-year decrease of -11.0% [4]. Business Segment Performance - Consumer Banking and Lending revenue decreased by -4.8%, better than the expected -6.3% [1][4]. - Corporate and Investment Banking revenue was down -0.2%, outperforming the expected -6.1% [1][4]. - Wealth and Investment Management revenue increased by +4.8%, significantly better than the expected -0.3% [1][4]. - Commercial Banking revenue decreased by -2.1%, also better than the expected -8.2% [1][4]. Credit Quality and Capital Ratios - Provision for credit losses was $1.065 billion, better than the expected $1.345 billion [2][5]. - The non-performing loans (NPL) ratio improved to 0.90%, down from the expected 0.94% [2][5]. - The Common Equity Tier 1 (CET1) ratio increased to 11.3%, exceeding the expected 11.2% [2][5]. - Return on Tangible Common Equity (ROTCE) was reported at 13.9%, better than the expected 12.9% [2][5].