Over $4 billion set aside for the fake account and MBS issues post-crisis, another billion today in fines for issues around mortgages, loans and risk compliance, and the Fed putting a limit on growth with a balance sheet cap.
Aside from the impact on the stock price, many in the industry now publicly wonder whether WF has been punished too harshly, and, by extension, the shareholders.
And results, while lower than competitors, have not been bad:
Preliminary net income of $5.9 billion, compared with $5.6 billion in first quarter 2017
Diluted earnings per share (EPS) of $1.12, compared with $1.03
Revenue of $21.9 billion, down from $22.3 billion
Net interest income of $12.2 billion, down $86 million, or 1%
Noninterest income of $9.7 billion, down $235 million, or 2%
Average deposits of $1.3 trillion, down $2.0 billion
Average loans of $951.0 billion, down $12.6 billion, or 1 percent
Return on assets (ROA) of 1.26 percent, return on equity (ROE) of 12.37 percent, and return on average tangible common equity (ROTCE) of 14.75 percent1
Wells Fargo last month hired C. Allen Parker as new general counsel.
Wells Fargo will hold its 2018 shareholder meeting on April 24, listen to it live here. The company presentation will be available as well following the event.
For ongoing analysis, news, research and networking, please visit: http://www.thecompliancestrategyinstitute.com