Wells Fargo reported fourth-quarter earnings that exceeded expectations. However, its revenue came in below forecasts.
The bank’s net income came in at 64 cents a share, vs. the 58 cents expected by analysts polled by FactSet. The earnings were 60 cents a share in the year-ago quarter.
Revenue fell to $17.93 billion in the quarter, from $19.86 billion in the year-ago quarter. Analysts polled by FactSet had expected $19.347 billion.
Net interest income was $9.275 billion, down $17 million. Average deposits fell -20% to $205.8 billion.
The bank’s nonperforming assets rose +9% year-over-year to $8.89 billion. Its non-accrual loans increased to $8.73 billion from $5.65 billion mainly due to increases in the commercial real estate, residential mortgage and lease financing portfolios, partially offset by a decrease in the commercial and industrial portfolio - according to the company's statement.
The Federal Reserve has given the nod to several big U.S. banks including Wells Fargo to resume share buybacks in the first quarter of 2021.