- REUTERS/Chris Keane
Wells Fargo reported third-quarter earnings on Wednesday that beat expectations.
The bank reported diluted earnings per share of $1.05 on revenue of $21.9 billion.
Analysts were expecting earnings per share of $1.04 on revenue of $21.79 billion, according to Bloomberg.
In the same quarter last year, the bank reported earnings of $1.02 per share.
“Compared with a year ago, we grew loans, deposits and capital, and returned more capital to shareholders through dividends and share buybacks,” said Chairman and CEO John Stumpf in a press release.
“Our balance sheet and credit results remained strong and our 265,000 team members continue to focus on helping our customers succeed financially.”
Net interest income of $11.5 billion was up from the previous quarter partly because of growth in investment securities and lending – including “the full quarter benefit of the GE Capital loan purchase and related financing transaction that settled late in the second quarter,” according to the bank.
On Tuesday it was announced that Wells Fargo would buy the last of General Electric’s commercial lending business.
Here’s a breakdown for Q3:
- Total quarter-end loans of $903.2 billion were up 8% from the same quarter a year ago. Total average deposits of $1.2 trillion were up 6% from the year ago quarter. Investment securities were $345.1 billion. Community banking reported revenue of $13.6 billion, up 6% from the year-ago quarter. Within consumer lending, home lending saw originations of $55 billion, down from the second quarter, and applications of $73 billion, also down from the previous quarter. Wholesale banking reported revenue of $5.6 billion, down 2% from Q3 2014. Wealth and investment management reported revenues of $3.9 billion, up 2% from the year-ago quarter. In the asset-management division, total AUM of $480 billion was down $4 billion from the year-ago quarter. The firm returned $3.2 billion to shareholders in Q3 in dividends and stock repurchases amounting to 51.7 million shares of common stock.
In the second quarter, Wells missed on the top line and reported bottom-line results that were right in line with expectations, with diluted earnings per share of $1.04 on revenue of $21.3 billion.