Wells Fargo Q2 2024 Earnings Report
Key Takeaways
Wells Fargo reported a second quarter net income of $4.9 billion, or $1.33 per diluted share. The company saw growth in fee-based revenue offsetting a decline in net interest income. Strong performance was noted in investment advisory, trading, and investment banking fees.
Diluted earnings per common share grew year-over-year.
Fee-based revenue increased, offsetting a decline in net interest income.
Strong performance in investment advisory, trading, and investment banking fees.
Capital position remains strong, with continued repurchase of common stock.
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Wells Fargo Revenue by Segment
Forward Guidance
Wells Fargo expects to increase its third quarter common stock dividend by 14%, subject to approval by the Company’s Board of Directors at its regularly scheduled meeting later this month. The Company’s stress capital buffer (SCB) for October 1, 2024, through September 30, 2025, is expected to be 3.8%; the Federal Reserve Board has indicated that it will publish our final SCB by August 31, 2024.
Positive Outlook
- Expected increase in third quarter common stock dividend by 14%.
- Stress capital buffer (SCB) for October 1, 2024, through September 30, 2025, is expected to be 3.8%.
- Continued execution on strategy to better serve customers and drive higher returns over time.
- Investments in branch network to improve customer experience.
- Investments in talent and technology to capture opportunity in commercial businesses.
Challenges Ahead
- Risk and control work remains top priority.
- Uncertainty regarding final SCB publication by the Federal Reserve Board.
- Dependence on Board of Directors' approval for dividend increase.
- Lower net interest income due to higher interest rates on funding costs.
- Commercial loan demand remained tepid.