US bank Wells Fargo managed to post a 4% profit increase in the fourth quarter.
U.S. bank Wells Fargo managed to post fourth quarter profit up 4%, but revenue fell 10% due to decline in business due to pandemic and low interest rates .
Net income stood at $ 2.99 billion for the last quarter of 2020 from $ 2.83 billion a year earlier, according to a statement released Friday.
Adjusted earnings per share, the benchmark for North American investors, came in at 64 cents, better than analysts’ forecast of 60 cents.
The title Wells Fargo fell 3.77% at the opening on Wall Street.
“Although our financial performance has improved and we earned $ 3 billion in the 4th quarter, our results continue to be impacted by the unprecedented operating environment and the need to put our past problems behind us,” said stated CEO Charlie Scharf, quoted in the press release.
The leader was referring in particular to the fake accounts scandal discovered in 2016, where customer advisers had created 3.5 million fake accounts in order to achieve good business objectives.
This expensive episode had earned him a fine of $ 3 billion in February, already provisioned in 2019.
In the last quarter, the California bank set aside another $ 321 million for settlements in the case.
Wells Fargo continued its restructuring efforts that cost it $ 781 million, offset by the divestiture of its student loan portfolio for $ 757 million.
At $ 17.9 billion, down nearly 10%, the bank’s turnover, most of whose activities relate to financing the real economy through loans to households and SMEs. , suffered from low interest rates.
“Income from interest rates fell 17%,” says the firm.
Banking activity for personal accounts and those of SMEs fell by 8%. In contrast, home loan income is up 2% and auto loans 4%. The credit card business is down 7%.