Wells Fargo shares down in pre-market as Q2 net interest income falls

12th Jul 2024 11:22

(Sharecast News) - Banking giant Wells Fargo revealed on Friday that Q2 net interest income was almost down double-digits year-on-year.

Wells Fargo posted a 9% decline in net interest income to $11.92bn, below the $12.12bn expected on the Street, primarily due to the impact of higher interest rates on funding costs.

On the other hand, earnings per share came in at $1.33, while revenues came to $20.69bn, ahead of estimates for $1.29 per share and $20.29bn, respectively.

Chief executive Charlie Scharf said: "We continued to see growth in our fee-based revenue offsetting an expected decline in net interest income.

"The investments we have been making allowed us to take advantage of the market activity in the quarter with strong performance in investment advisory, trading, and investment banking fees."

As of 1325 BST, Wells Fargo shares were down 6.08% in pre-market trading at $56.50 each.

Reporting by Iain Gilbert at Sharecast.com