Profit Rises For Wells Fargo & Co (NYSE:WFC)
There was a 13% rise in the Q3 profit for Wells Fargo & Co (NYSE:WFC), the largest money lender in the U.S. The drop in revenue from mortgage-lending has been offset by a dip in soured loans and reduced expenses. There was a rise in net income to $5.6B in the period from July-Sept in comparison to the $4.9B that it stood at in the previous year. The earnings per share were 99 cents which topped the analyst estimate of 98 cents/share.
The Q3 revenue dropped from $21.2B to $20.2B and was just below analysts’ projection of $21.1B. There was a sharp rise in the interest rates of mortgages in the United States in the summer and spring which affected Wells Fargo & Co (NYSE:WFC)’s mortgage-business in an adverse manner. The bank controls almost 1/3rd of the mortgage market in the United States and most of its business has come from mortgage refinancing. This fell due to the increase in interest rates. In the Q3, the bank funded $80B worth of mortgages which was a dip from the $139 that it stood at in the previous year.
In Friday’s trading, Wells Fargo & Co (NYSE:WFC) dropped by 00.02%. The opening price of the shares was $40.44, which climbed to an intraday high of $41.51 and dipped to a close of $41.43. Approximately 46.03 million shares were traded on Friday while an average volume of 18.93 million shares were traded over a 30 day period. The 52-week low of Wells Fargo & Co (NYSE:WFC) shares is $31.25 and its 52-week high is $44.78. The company has a market capitalization of $218.49 billion.
About the company
Wells Fargo & Co (NYSE:WFC) is a bank holding company. It is a diversified financial-services company. Wells Fargo & Co (NYSE:WFC) has 3 operating segments: 1) Community Banking, 2) Wholesale Banking and Wealth, Brokerage and 3) Retirement.