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published in Blogs
Jul 15, 2021
Wells Fargo (WFC, $44.93) beats Q2 earnings expectations, amid release of $1.6 billion credit loss reserves

Wells Fargo (WFC, $44.93) beats Q2 earnings expectations, amid release of $1.6 billion credit loss reserves

Wells Fargo on Wednesday reported second-quarter earnings and revenue results that topped Wall Street’s expectations, as the bank continued to release reserves that it had set aside as cushion against pandemic-induced loan loss risks.

The financial behemoth’s earnings for the quarter came in at $1.38, beating the 97 cents a share expected by analysts polled by Refinitiv. The quarter marked a  sharp rebound from the loss it incurred in the year-ago quarter.

Revenue rose +10% year-over-year to $20.27 billion, vs. $17.77 billion expected by analysts surveyed by Refinitiv.

Wells Fargo released $1.6 billion of its credit loss reserves as consumers perform better than the bank expected amid the pandemic-induced recession.

The bank’s net interest margin was 2.02% for the quarter, compared to analysts’ expectation of 2.05% (according to FactSet).

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