Wells Fargo Posts In-Line Q2 Earnings, But Revenue Misses Views

reported in-line earnings for the second quarter, but the bank's revenue missed analysts' expectations. The San Francisco, California-based bank reported quarterly net income of $5.72 billion, or $1.03 per share, versus $5.73 billion, or $1.01 per share, in the year-ago quarter. Its revenue climbed to $21.3 billion from $21.1 billion. However, analysts were expecting a profit of $1.03 per share on revenue of $21.7 billion. The average estimate among 57 Estimize users was for earnings of $1.06 per share and revenue of $21.7 billion. Average loans increased 5 percent year-over-year to $870.4 billion. Total average deposits increased 8 percent to $1.2 trillion. Costs gained 2.3 percent to $12.47 billion versus $12.19 billion. Net interest income surged to $11.3 billion in the quarter. Provision for credit losses surged 38.2 percent to $300 million. Chief Financial Officer John Shrewsberry said, "Wells Fargo's second quarter results once again reflected the benefit of our balanced business model. Compared with the first quarter, revenue increased on net interest income growth and expenses declined. Our balance sheet remained strong, as evidenced by solid asset quality, liquidity and capital, and we were within our targeted ranges for ROA, ROE and efficiency." Wells Fargo shares fell 0.97 percent to $56.19 in pre-market trading.