Source: Dreamstime
Reading time: 2 minutes
The U.S. banking service provider crushed analyst estimates with a stellar quarterly performance which, however, was somewhat backed by the release of its credit loss reserves: the money meant for covering losses on loans in the event of defaults or nonpayments. The company’s stock dipped 1.6% shortly after the news.
Financial performance for Q3 2021
“We are a different company today and the operational and cultural changes we’ve made are enabling us to execute with significantly greater discipline than we have in the past.”
Charlie Scharf, CEO
Here’s how Wells Fargo did for the period:
– Gross revenue: $18.83 billion vs. expectations for $18.35 billion
– Net income: $5.1 billion (59% y/y growth)
– Earnings per share: $1.22 vs. expectations for 99 cents
– Credit reserve release: the company explained it had released $1.65 billion as a safeguard against widespread loan losses caused by the pandemic
– Fines for the period: $250 million for its “unsafe or unsound practices” in relation to its loan modification program, as well as $72.6 million to settle a government lawsuit accusing the bank of defrauding hundreds of commercial customers
– Repurchased shares: 114.2 million common shares for a total of $5.3 billion
– Dividend increase: Wells Fargo raised its common stock divided to 20 cents per share; dividends for the previous quarter amounted to 10 cents per common share
Outlook for Q4 2021 and beyond
“The investments we’re making in risk and regulatory-related work come alongside investments we’re making in customer experience. These include new digital and mobile capabilities, a new digital infrastructure strategy, and new products with unique value propositions . . . I remain confident in our ability to continue to close the remaining gaps over the next several years, though we may continue to have setbacks along the way.”
Charlie Scharf
The bank has yet to release an official forward-looking statement. So far, shares of Wells Fargo are up more than 50% in 2021.
Upcoming earnings reports
See the full list of upcoming earnings reports for 18-23 October in the tables below.
Monday, 18th October 2021
| Country | Company | Fiscal period |
|---|---|---|
| USA | IQVIA Holdings Inc | Q3 2021 |
| USA | State Street Corp | Q3 2021 |
| Sweden | Sandvik AB | Q3 2021 |
| Kingdom of the Netherlands | Koninklijke Philips NV | Q3 2021 |
Tuesday, 19th October 2021
| Country | Company | Fiscal period |
|---|---|---|
| USA | Netflix Inc | Q3 2021 |
| USA | Lam Research Corp | Q1 2022 |
| USA | United Airlines Holdings Inc | Q3 2021 |
| USA | Interactive Brokers Group Inc | Q3 2021 |
| USA | Intuitive Surgical Inc | Q3 2021 |
| Canada | Canadian National Railway Co | Q3 2021 |
| Austria | Telekom Austria AG | Q3 2021 |
| USA | Procter & Gamble Co | Q1 2022 |
| USA | Travelers Companies Inc | Q3 2021 |
| USA | Halliburton Co | Q3 2021 |
| USA | Philip Morris International Inc | Q3 2021 |
| USA | Johnson & Johnson | Q3 2021 |
| USA | Bank of New York Mellon Corp | Q3 2021 |
| USA | Fifth Third Bancorp | Q3 2021 |
| USA | Las Vegas Sands Corp | Q3 2021 |
| USA | ACADIA Pharmaceuticals Inc | Q3 2021 |
| Sweden | Telefonaktiebolaget LM Ericsson | Q3 2021 |
Wednesday, 20th October 2021
| Country | Company | Fiscal period |
|---|---|---|
| USA | CSX Corp | Q3 2021 |
| USA | International Business Machines Corp | Q3 2021 |
| USA | Tesla Inc | Q3 2021 |
| USA | SLM Corp | Q3 2021 |
| United Kingdom | TechnipFMC PLC | Q3 2021 |
| USA | Entegris Inc | Q3 2021 |
| USA | Abbott Laboratories | Q3 2021 |
| USA | Biogen Inc | Q3 2021 |
| USA | Verizon Communications Inc | Q3 2021 |
| USA | Anthem Inc | Q3 2021 |
| Sweden | Husqvarna AB | Q3 2021 |
| Norway | Yara International ASA | Q3 2021 |
| Kingdom of the Netherlands | ASML Holding NV | Q3 2021 |
| Kingdom of the Netherlands | Akzo Nobel NV | Q3 2021 |
| Norway | Gjensidige Forsikring ASA | Q3 2021 |
| Sweden | Skandinaviska Enskilda Banken AB | Q3 2021 |
Thursday, 21st October 2021
| Country | Company | Fiscal period |
|---|---|---|
| USA | Intel Corp | Q3 2021 |
| USA | Chipotle Mexican Grill Inc | Q3 2021 |
| USA | Whirlpool Corp | Q3 2021 |
| USA | Mattel Inc | Q3 2021 |
| USA | Snap Inc | Q3 2021 |
| USA | KeyCorp | Q3 2021 |
| USA | Freeport-McMoRan Inc | Q3 2021 |
| USA | Blackstone Inc | Q3 2021 |
| USA | Valero Energy Corp | Q3 2021 |
| USA | AT&T Inc | Q3 2021 |
| USA | Marsh & McLennan Companies Inc | Q3 2021 |
| USA | American Airlines Group Inc | Q3 2021 |
| USA | Nucor Corp | Q3 2021 |
| USA | Union Pacific Corp | Q3 2021 |
| Norway | Otello Corporation ASA | Q3 2021 |
| Germany | SAP SE | Q3 2021 |
| Finland | Nordea Bank Abp | Q3 2021 |
| Norway | DNB Bank ASA | Q3 2021 |
| Germany | Software AG | Q3 2021 |
| Sweden | Volvo AB | Q3 2021 |
| United Kingdom | Barclays PLC | Q3 2021 |
| Norway | PGS ASA | Q3 2021 |
| Norway | Nordic Semiconductor ASA | Q3 2021 |
| Belgium | Orange Belgium SA | Q3 2021 |
| Sweden | Telia Company AB | Q3 2021 |
| Kingdom of the Netherlands | Randstad NV | Q3 2021 |
Friday, 22nd October 2021
| Country | Company | Fiscal period |
|---|---|---|
| Ireland | Seagate Technology Holdings PLC | Q1 2022 |
| USA | Honeywell International Inc | Q3 2021 |
| USA | American Express Co | Q3 2021 |
| USA | Schlumberger NV | Q3 2021 |
| Sweden | Boliden AB | Q3 2021 |
| Sweden | Saab AB | Q3 2021 |
Saturday, 23rd October 2021
| Country | Company | Fiscal period |
|---|---|---|
| India | ICICI Bank Ltd | Q2 2022 |
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