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Jun 30, 2022
Wells Fargo Q2 2022 Earnings Report
Reported a net income of $3.1 billion, or $0.74 per diluted share.
Key Takeaways
Wells Fargo reported a decline in net income for Q2 2022, with $3.1 billion, or $0.74 per diluted share. The results reflected improving earnings capacity with expenses declining and rising interest rates driving strong net interest income growth. Loan balances increased with growth in both consumer and commercial loans. Credit quality remained strong, and efficiency initiatives were executed.
Net income declined in the second quarter, but underlying results reflected improving earnings capacity.
Expenses declined and rising interest rates drove strong net interest income growth.
Loan balances increased with growth in both consumer and commercial loans.
Credit quality remained strong, and efficiency initiatives were executed.
Revenue by Segment
Forward Guidance
Wells Fargo expects results to continue to benefit from the rising interest rate environment with growth in net interest income expected to more than offset any further near-term pressure on noninterest income. Credit losses are expected to increase from current low levels, but no meaningful deterioration has been seen in consumer or commercial portfolios. Efficiency initiatives are on track, and the Federal Reserve stress test confirmed the company's strong capital position and capacity to return excess capital to shareholders through dividends and common stock repurchases.
Positive Outlook
- Results should continue to benefit from the rising interest rate environment.
- Growth in net interest income is expected to more than offset any further near-term pressure on noninterest income.
- Efficiency initiatives continue to be on track.
- Federal Reserve stress test confirmed strong capital position.
- Capacity to return excess capital to shareholders through dividends and common stock repurchases.
Challenges Ahead
- Net income declined in the second quarter.
- Noninterest income decreased due to higher interest rates and weaker financial markets.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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