Wells Fargo & Company NYSE: WFC) on Tuesday reported first-quarter earnings that came in below Wall Street expectations, despite higher revenue and improved profitability metrics.
The bank posted adjusted earnings of $1.56 per share, missing analysts’ estimates of $1.58. Revenue totaled $21.45 billion, also below the $21.77 billion consensus, though it rose 6% from a year earlier, supported by gains in net interest and fee income.
Return on equity improved to 12.2% from 11.5%, while return on tangible common equity increased to 14.5% from 13.6%.
Net Interest And Fee Income Rise
Net interest income increased 5% to $12.09 billion, driven by higher deposit balances, lower deposit costs and improved Markets performance. Growth was also supported by higher loan and securities balances and fixed-rate asset repricing, partly offset by lower interest rates on floating-rate assets.
Noninterest income rose 8% to $9.35 billion, boosted by venture capital investments and …