Wells Fargo & Company (NYSE:WFC) reported Q3 net interest of $13.1 billion, up 8% Y/Y, primarily due to the impact of higher interest rates.
Q3 EPS reached $1.48, beating the consensus of $1.24 and $0.86 a year ago. Wells Fargo’s profit rose in the third quarter as the U.S. lender benefited from customers paying higher interest on loans.
The bank reported Q3 revenues of $20.86 billion, up 21% Y/Y, above the consensus of $20.11 billion.
The bank earned Q3 profits of $5.77 billion, up 61% from $3.59 billion a year earlier.
CEO Charlie Scharf commented, “Our third quarter results were solid…Our revenue growth from a year ago included both higher net interest income and noninterest income as we benefited from higher rates and the investments we are making in our businesses. Expenses declined from a year ago due to lower operating losses.”
“While the economy has continued to be resilient, we are seeing the impact of the slowing economy with loan balances declining and charge-offs continuing to deteriorate modestly,” Scharf added.
Consumer, Small and Business Banking was up 7% to $6.67 billion, driven by the impact of higher interest rates.
The bank posted a decline in total deposits to $1.34 trillion from $1.41 trillion a year earlier.
Guidance: For FY23, Wells Fargo expects net interest income to be ~16% higher than the FY22 level of $45.0 billion, up from prior guidance of ~14% higher, with 4Q23 expected to be ~$12.7 billion.