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Sep 30, 2022
Wells Fargo Q3 2022 Earnings Report
Wells Fargo's third quarter net income decreased due to accruals for litigation, customer remediation, and regulatory matters, while revenue increased.
Key Takeaways
Wells Fargo reported a decrease in net income for Q3 2022, impacted by operating losses related to litigation, customer remediation, and regulatory matters. However, the company saw revenue growth driven by rising interest rates and improved operating efficiencies.
Net income for the third quarter of 2022 was $3.5 billion, or $0.85 per diluted share, which included a negative impact of $0.45 per share due to accruals for litigation, customer remediation, and regulatory matters.
Total revenue increased to $19.505 billion, up from $18.834 billion in the third quarter of 2021.
The company's CET1 ratio was 10.3%, which is 110 basis points above the current regulatory minimum, and the common stock dividend was increased by 20%.
Average loans increased to $945.5 billion, while average deposits decreased slightly to $1,407.9 billion.
Wells Fargo
Wells Fargo
Wells Fargo Revenue by Segment
Revenue by Segment
Consumer Banking & Lending Revenue
CapyFin.comCommercial Banking Revenue
CapyFin.comCorporate & Investment Banking Revenue
CapyFin.comWealth & Investment Mgmt Revenue
CapyFin.comCorporate Revenue
CapyFin.com Forward Guidance
Wells Fargo expects to benefit from higher rates and disciplined expense management, with consumer and business customers remaining in strong financial condition. They are closely monitoring risks related to inflation, increasing interest rates, and geopolitical risks, anticipating continued increases in delinquencies and credit losses.
Positive Outlook
- Wells Fargo will continue to benefit from higher rates.
- Ongoing disciplined expense management will contribute to financial performance.
- Both consumer and business customers remain in a strong financial condition.
- The company continues to see historically low delinquencies.
- The company has high payment rates across portfolios.
Challenges Ahead
- The company is closely monitoring risks related to the continued impact of high inflation.
- Increasing interest rates pose a risk.
- Broader geopolitical risks are being closely monitored.
- The company does expect to see continued increases in delinquencies.
- The timing of credit losses remains unclear.