Wells Fargo & Co. (WFC) reported a lower profit in its first quarter, even with rising revenues. This was observed in the pre-market activity on the New York Stock Exchange, where Wells Fargo shares dipped around 2.6 percent to trade at $55.23.
For the first quarter, the net income was $4.62 billion or $1.20 per share, a decrease from last year's $4.99 billion or $1.23 per share. The recent results incorporated an additional expenditure for the estimated FDIC special assessment, amounting to $284 million, or $0.06 per share.
The total revenues experienced a slight increase to $20.86 billion, up from $20.73 billion the previous year. Contrary to the results, analysts had anticipated the company to report profits of $1 per share on revenues of $18.6 billion, according to the data put together by Thomson Reuters. Notably, the analysts' estimates usually exclude special items.
There was also a noticeable downfall of net interest income to $12.23 billion, compared to last year's $13.34 billion. On the other hand, non-interest income experienced a 17% rise. The provision for credit losses witnessed an 8% drop, falling to $938 million from the previous year's sum of $1.21 billion.
In terms of averages for the quarter, both loans and deposits declined from last year, measuring at $928.1 billion and $1.34 trillion, respectively.
