SAN FRANCISCO: Wells Fargo & Co. says second-quarter earnings fell to $5.19 billion from $5.86 billion a year ago.
The bank, based in San Francisco, said it had earnings of 98 cents per share. Adjusted for pretax expenses, earnings came to $1.08 per share.
The results fell short of Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $1.12 per share.
The results include a tax expense of $481 million mostly related to state income taxes following the recent US Supreme Court decision that allows states to force more people to pay sales tax when they make online purchases.
The biggest US mortgage lender posted revenue of $25.03 billion in the period. Its revenue net of interest income was $21.55 billion, exceeding Street forecasts. Four analysts surveyed by Zacks expected $21.52 billion.
Wells Fargo shares have dropped almost 8 per cent since the beginning of the year, while the Standard & Poor’s 500 index has increased almost 5 per cent. The stock has climbed almost 2 per cent in the last 12 months.
