Wells Fargo has reported an 8% year-over-year (Y/Y) increase in its Q3 net interest to $13.1 billion, attributed to higher rates. The company's earnings per share (EPS) reached $1.48, surpassing both the consensus estimate of $1.24 and last year's figure of $0.86. The announcement was made on Friday.
Revenues for the third quarter jumped 21% Y/Y to $20.86 billion, beating the consensus estimate of $20.11 billion. The company also saw its profits surge 61% Y/Y to $5.77 billion. Wells Fargo CEO Charlie Scharf attributed this growth to higher net interest and noninterest income, lower operating losses, and a resilient economy, even though the slowing pace had negative impacts on loan balances and charge-offs.
The Consumer, Small, and Business Banking segment experienced a 7% increase to $6.67 billion due to higher rates. However, total deposits dropped from last year's $1.41 trillion to $1.34 trillion.
Looking ahead, Wells Fargo anticipates a 16% rise in net interest income for FY23 over FY22's $45.0 billion, up from prior guidance of approximately 14%. The company expects the fourth quarter of 2023 to be around $12.7 billion.
In response to the positive financial report, shares of Wells Fargo were up 2.37% at $40.68 in premarket trading last Friday.
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