- Wells Fargo topped analysts earnings expectations for the first quarter on Friday.
- The bank said its results could change depending on the outcome of an investigation into its alleged fraudulent lending practices dating back to 2016.
- “We also made progress on our priority of rebuilding trust with our customers, team members, communities, regulators, and shareholders,” CEO Tim Sloan said.
- Follow Wells Fargo’s stock price in real time here.
Shares of Wells Fargo rose as much as 3% in early trading Friday after the embattled bank reported earnings that topped Wall Street’s expectations.
For the first quarter of 2018, the bank said it earned $US1.12 a share on revenue of $US21.9 billion. Analysts polled by Bloomberg had expected earnings of $US1.06 and revenue of $US21.71 billion.
Those numbers could change depending on the outcome of a government investigation into the bank’s potentially fraudulent practices that were uncovered beginning in 2016.
Wells Fargo has been the subject of regulatory scrutiny after it was caught opening accounts for customers who had not applied or requested new services in order to grow branch numbers. The Federal Reserve in February issued a rare “growth ban” on the bank’s balance sheet as it struggled to regain compliance.
The nation’s top consumer watchdog, the Consumer Financial Protection Bureau, is currently mulling a record $US1 billion fine for the lending abuses, Reuters reported this week.
“I’m confident that our outstanding team will continue to transform Wells Fargo into a better, stronger company; however, we recognise that it will take time to put all of our challenges behind us,” CEO Tim Sloan, who took over in 2016 amid the scandal, said in a press release.
“During the first quarter our team members continued to focus on our vision of satisfying our customers’ financial needs and helping them succeed financially. We also made progress on our priority of rebuilding trust with our customers, team members, communities, regulators, and shareholders.”
Shares of Wells Fargo are down 12% this year.
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