Wells Fargo posts fourth straight revenue miss on mortgage issues

From Reuters - October 13, 2017

(Reuters) - Wells Fargo & Co (WFC.N) reported an 19 percent profit decline on Friday and weaker revenue than Wall Street had expected for the fourth consecutive quarter due to mortgage issues, sending its shares down 3.5 percent.

The third-largest U.S. lender, which has been embroiled in a prolonged scandal over its sales practices, said the dip in earnings came largely from a $1 billion accrual for a legal settlement over issues stemming from before the 2007-2009 financial crisis.

But revenue at the bank also suffered from a decline in mortgage banking revenue. Wells has been trying to bounce back from a scandal over dishonest sales practices that led to interrogations by U.S. Congress and fueled the ire of millions of consumers.

Wells Fargos earnings dropped to $4.6 billion during the third quarter. On an adjusted basis, its profit was $1.04 per share, scraping past estimates of $1.03, according to Thomson Reuters I/B/E/S.

Revenue fell 2 percent to $21.9 billion, hit by a 37 percent slump in mortgage banking. Analysts had forecast revenue of $22.4 billion.

Its shares fell 3.6 percent to $53.30 in early trading.


Continue reading at Reuters »