Business

Wells Fargo outperforms estimates as profits climb

Wall Street banking giant Wells Fargo reported a rise in quarterly profits this afternoon, comfortably beating expectations as it presses ahead with a major cost-cutting overhaul.

The lender posted earnings per share of $1.30 during the second quarter of 2019, rising from $0.98 per share a year ago and beating $1.15 per share Refinitiv estimates.

Read more: Goldman beat expectations despite profit drop

Loan
balances hit
$949.9bn,
rising
$1.6bn
from the previous
quarter as lending
in real
estate, credit card and automobile all
climbed.

Chief
Financial Officer John Shrewsberry said: “We
grew period-end loans and deposits, as well as pre-tax pre-provision
profit, compared with the first quarter and a year ago. Our credit
quality remained solid with net charge-offs near historic lows.”

The
San Francisco-based bank, which is the fourth largest in the US by
assets, has been mired in recent years by a swathe of high-profile
scandals.

Under
current interim chief executive Allen Parker, who was thrusted into
the role in March after the abrupt resignation of Tim Sloan, the firm
has sought to cut costs to boost its balance sheet.

Wells Fargo is one of three megabanks posting quarterly earnings today, with Goldman Sachs and JP Morgan also reporting to the market.

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