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UPDATE (8:00 a.m. EST):Wells Fargo announced this morning that it earned $4.25 billion during the first quarter, or $0.75 per share, ahead of analyst expectations and up from year ago results of $0.67 per share.
The bank saw revenue surge to $21.64 billion, up 6.5 per cent from the year ago period and substantially above the Street’s consensus view.
The San Francisco based company said total average core checking and savings deposits increased $7.8 billion sequentially.
“Quarterly revenue was the highest in nine quarters, and we achieved our ninth consecutive quarter of earnings per share growth,” Chairman and Chief Executive John Stumpf said.
Credit quality continued to improve at Wells Fargo, with consumer net charge offs declining 11 basis points to 1.91 per cent. The bank said it wrote off $2.4 billion during the first quarter and released $400 million in loan losses.
Photo: Wells Fargo
Wells Fargo will report first quarter results at 8:00 a.m. EST today, following financial giant J.P. Morgan Chase in kicking off the financial sector’s earnings season.
Analysts polled by Bloomberg are looking for the San Francisco, Calif., based bank to report earnings per share of $0.73 on revenue of $20.4 billion.
Unlike peers on the Street, Wells Fargo is less exposed to more volatile areas like trading and investment banking — instead it is deeply entrenched in consumer and commercial lending.
Already, J.P. Morgan has beat expectations this morning, on improved investment banking revenue and declining losses in its credit portfolio. The company said it earned $1.31 per share, ahead of estimates calling for $1.18.
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