- Brendan McDermid/Reuters
Wells Fargo reported third quarter earnings Friday, showing mixed results for the scandal-ridden bank.
The bank delivered adjusted earnings of $1.04 per share, slightly above the $1.03 per share Wall Street analysts expected and down from $1.05 last quarter.
The bank reported unadjusted earnings per share of $0.84 after accounting for losses due to “discrete litigation accrual.” Wells currently faces a class action lawsuit over its fraudulent accounts scandal and other legal woes. It set aside $1 billion in the quarter for the various litigation.
Here’s are the other big numbers from the release, which all missed analysts expectations:
- Revenue of $21.9 billion versus analyst expectations of $22.4 billion, and down from $22.5 billion in the second quarter. Net income of $4.6 billion, much lower than analysts expectations of $5.13 billion, and down from $5.28 billion in the second quarter. Net charge offs: rose to 0.30% from a post-crisis low of 0.27% in the second quarter.
The bank has faced numerous challenges stemming from its fake accounts scandal that broke a year ago. In September 2016, Wells reached a settlement with regulators after it was found that employees opened 2 million accounts in customers names without their knowledge between 2011 and 2015.
The scandal resulted in multiple congressional hearings and the eventual ouster of CEO John Stumpf. Also, reports suggest that the fake accounts practices may have taken place for many years prior to the original findings and resulted in at least 1.4 million more fraudulent accounts than originally believed.
Current CEO Tim Sloan was grilled by lawmakers on October 3, the one year anniversary of the scandal, facing tough criticism from senators on both sides of the aisle.
Analysts will also expect updates on efforts to decrease management costs as well as any new details on the firms ongoing legal inquiries and litigation.