Q4 Profits Up 15% at Wells Fargo’s Wealth Unit

“A lot of the benefit from cost-cutting has already been felt”. That compares to consensus estimates from Thomson Reuters of $1.02 in EPS on $21.80 billion in revenue. “We are working with each customer to help them to work through this”.

Wells Fargo posted assets of $1.79 trillion as of the end of 2015, beating Citigroup’s $1.73 trillion.

Still, Wells Fargo’s Mr. Shrewsberry said the bank has netted “a good outcome” from its deal with Credit Suisse.

Clearly, the fall in commodity prices is having an impact on loans to the sector, but it’s important to recognize that Wells Fargo’s allowance for credit losses of $12.5 billion (or 1.37% of loans) is slightly lower compared to $12.6 billion (1.39%) at the end of September.

One bright spot for the industry has been lower litigation costs as old cases are settled and fewer new ones are filed. Wells Fargo is now the nation’s third largest bank by assets, beating Citigroup, the former No. 1, for the title. Through the first three quarters of 2015, the tally was less than $US7 billion.

Wells Fargo’s net interest income, a measure of the interest received from loans after paying for funding and accounting for potential loan losses, rose 0.58 per cent to $10.76-billion. MB Financial Bank Trust Department boosted its stake in Wells Fargo by 9.5% in the fourth quarter.

Our performance in the fourth quarter reflected a continuation of the solid results we generated all year and the ability of our diversified business model to perform consistently across cycles. Now, see where he invests his money and why Wells Fargo is a core holding of his multi-million dollar portfolio. Vetr downgraded shares of Wells Fargo from a “buy” rating to a “hold” rating and set a $56.22 price objective on the stock.in a research report on Monday, December 14th. Goldman Sachs posts results on January 20.

Revenue rose to $21.6 billion from $21.4 billion. Fulton Bank now owns 43,732 shares of the financial services provider’s stock worth $2,377,000 after buying an additional 382 shares during the last quarter.

Morgan Stanley and Citigroup preannounced fourth-quarter charges, at $US150 million and $US300 million, respectively. The EPS for year 2016 is estimated to be 4.41.

Gerspach said Citigroup’s overall exposure to energy stands at about 58 billion, down about 2 billion from October. Expenses as a share of revenue in the fourth quarter was 57.4 percent, within the 55 percent-59 percent range that Wells Fargo targets for its so-called “efficiency ratio”. Perhaps over the past several years there are certain things banks underinvested in as they grappled with the tight revenue environment. We’re all going to have to get ready for this moment when deposits start to flow out of banks, and we should celebrate it, right?