Wells Fargo says its fourth-quarter earnings rose 17 per cent from a year ago, as the consumer banking giant benefited from the recently passed GOP tax bill, but incurred additional costs related to improper sales practices and other matters.
Wells said it earned $6.15 billion in the quarter, or $1.16 per share, versus $5.27 billion, or 96 cents per share, in the same period a year ago.
Wells recorded a $3.35 billion benefit in the quarter tied to the Trump tax bill. Wells Fargo had $7 billion in deferred tax liabilities, basically taxes it may have owed in the future, and was able to write down some of those liabilities for a gain. The bank also had $3.3 billion in charges due to pending litigation against the company.