Wells Fargo (NYSE:WFC) reported Q1 EPS of $0.88, $0.08 better than the analyst estimate of $0.80. Revenue for the quarter came in at $17.59 billion versus the consensus estimate of $17.8 billion.
Chief Executive Officer Charlie Scharf commented, “Our results in the first quarter reflected the continued economic recovery and the progress we’ve made on our strategic priorities. We had broad-based loan growth, growing both consumer and commercial loans from the fourth quarter. Credit quality remained strong and our results included a $1.1 billion pre-tax reduction in the allowance for credit losses. We continued to return capital to our shareholders, including repurchasing $6 billion of common stock and increasing our quarterly common stock dividend to 25 cents per share.”
“We are moving forward with our risk and control infrastructure work and continue to note that our path forward will be uneven but remain confident in our ability to continue to close remaining gaps over the next several years,” Scharf added.
“We also continue to focus on bringing to market differentiated products and services. We partnered with Bilt Rewards and Mastercard® (NYSE:MA) to issue the first credit card that earns points on rent payments without a transaction fee. We also began rolling out our rebuilt mobile app for consumer customers. It has a new, modern look and feel and a simpler user experience that will help our customers more easily accomplish their banking needs. We continue to invest to improve our digital capabilities with additional enhancements planned for this year,” Scharf continued.
"Our internal indicators continue to point towards the strength of our customers’ financial position, but the Federal Reserve has made it clear that it will take actions necessary to reduce inflation and this will certainly reduce economic growth. In addition, the war in Ukraine adds additional risk to the downside. Wells Fargo is positioned well to provide support for our clients in a slowing economy. While we will likely see an increase in credit losses from historical lows, we should be a net beneficiary as we will benefit from rising rates, we have a strong capital position, and our lower expense base creates greater margins from which to invest.” Scharf concluded.
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