Wells Fargo’s Latest Quarterly Revenues Explode with Gains of Nearly 60%, But There’s a Catch

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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

CountryCompanyFiscal period
USAIQVIA Holdings Inc
Q3 2021
USAState Street Corp
Q3 2021
SwedenSandvik AB
Q3 2021
Kingdom of the NetherlandsKoninklijke Philips NV
Q3 2021

Tuesday, 19th October 2021

CountryCompanyFiscal period
USANetflix Inc
Q3 2021
USALam Research Corp
Q1 2022
USAUnited Airlines Holdings Inc
Q3 2021
USAInteractive Brokers Group Inc
Q3 2021
USAIntuitive Surgical Inc
Q3 2021
CanadaCanadian National Railway Co
Q3 2021
AustriaTelekom Austria AG
Q3 2021
USAProcter & Gamble Co
Q1 2022
USATravelers Companies Inc
Q3 2021
USAHalliburton Co
Q3 2021
USAPhilip Morris International Inc
Q3 2021
USAJohnson & Johnson
Q3 2021
USABank of New York Mellon Corp
Q3 2021
USAFifth Third Bancorp
Q3 2021
USALas Vegas Sands Corp
Q3 2021
USAACADIA Pharmaceuticals Inc
Q3 2021
SwedenTelefonaktiebolaget LM Ericsson
Q3 2021

Wednesday, 20th October 2021

CountryCompanyFiscal period
USACSX Corp
Q3 2021
USAInternational Business Machines Corp
Q3 2021
USATesla Inc
Q3 2021
USASLM Corp
Q3 2021
United KingdomTechnipFMC PLC
Q3 2021
USAEntegris Inc
Q3 2021
USAAbbott Laboratories
Q3 2021
USABiogen Inc
Q3 2021
USAVerizon Communications Inc
Q3 2021
USAAnthem Inc
Q3 2021
SwedenHusqvarna AB
Q3 2021
NorwayYara International ASA
Q3 2021
Kingdom of the NetherlandsASML Holding NV
Q3 2021
Kingdom of the NetherlandsAkzo Nobel NV
Q3 2021
NorwayGjensidige Forsikring ASA
Q3 2021
SwedenSkandinaviska Enskilda Banken AB
Q3 2021

Thursday, 21st October 2021

CountryCompanyFiscal period
USAIntel Corp
Q3 2021
USAChipotle Mexican Grill Inc
Q3 2021
USAWhirlpool Corp
Q3 2021
USAMattel Inc
Q3 2021
USASnap Inc
Q3 2021
USAKeyCorp
Q3 2021
USAFreeport-McMoRan Inc
Q3 2021
USABlackstone Inc
Q3 2021
USAValero Energy Corp
Q3 2021
USAAT&T Inc
Q3 2021
USAMarsh & McLennan Companies Inc
Q3 2021
USAAmerican Airlines Group Inc
Q3 2021
USANucor Corp
Q3 2021
USAUnion Pacific Corp
Q3 2021
NorwayOtello Corporation ASA
Q3 2021
GermanySAP SE
Q3 2021
FinlandNordea Bank Abp
Q3 2021
NorwayDNB Bank ASA
Q3 2021
GermanySoftware AG
Q3 2021
SwedenVolvo AB
Q3 2021
United KingdomBarclays PLC
Q3 2021
NorwayPGS ASA
Q3 2021
NorwayNordic Semiconductor ASA
Q3 2021
BelgiumOrange Belgium SA
Q3 2021
SwedenTelia Company AB
Q3 2021
Kingdom of the NetherlandsRandstad NV
Q3 2021

Friday, 22nd October 2021

CountryCompanyFiscal period
IrelandSeagate Technology Holdings PLC
Q1 2022
USAHoneywell International Inc
Q3 2021
USAAmerican Express Co
Q3 2021
USASchlumberger NV
Q3 2021
SwedenBoliden AB
Q3 2021
SwedenSaab AB
Q3 2021

Saturday, 23rd October 2021

CountryCompanyFiscal period
IndiaICICI Bank Ltd
Q2 2022

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