Wells Fargo & Co announced his results for the first quarter of 2018 before the US stock market opened on Friday. Shares rose 1.48% in pre-market trading on Friday.
According to the financial report, Wells Fargo & Co made a net profit of $5.94 billion, or $1.12 per share, in the first quarter. The net interest margin is 2.84%, and analysts expect 2.88%. Revenue fell to $21.9 billion from $22.3 billion in the fourth quarter of 2017. Net interest income is $12.24 billion. Non-performing assets worth 8.29 billion US dollars. Provision for bad debts amounts to $191 million and is expected to be $729.4 million. The efficiency ratio is 64.9%.
Source: Wells Fargo & Co's first quarter financial report of 2018
Main business unit
Wells Fargo & Co's business units include community banking, wholesale banking and wealth and investment management.
Data source: Wells Fargo & Co 2018 first quarter financial report-business unit performance statement
Remarks: banks have adopted new accounting standards and revised previously reported financial data
Community bankIs the pillar of the bank's business, mainly for individuals and small businesses to provide a complete range of financial products and services. The net profit of community banks in the first quarter was $2.7 billion.
Wholesale bankAlso known as corporate banking, wholesale banking provides financial solutions to companies across the United States and around the world. The business made a net profit of $2.87 billion in the first quarter.
Wealth and Investment Management BusinessIs to provide customers with a package of personalized wealth management, investment, pension and other products and services. The business made a net profit of $710 million in the first quarter.
Prospects for the future
Tim Sloan, CEO of Wells Fargo, said that with the efforts of an excellent team, Wells Fargo will become better and stronger. This quarter, Wells Fargo will continue to improve its compliance and operational risk management plans and invest in innovative products and services to enhance the customer experience. At the same time, banks will increase their donations to non-profit and community-based organizations. In addition, the bank will strive to save money and strive to achieve the target of $4 billion in spending cuts by the end of 2019.
Investors are expected to focus on Wells Fargo & Co's growth prospects and cost control capabilities in the current quarter, Dow Jones reported.
(editor / she Shitong)