Consumer banking giant Wells Fargo reported better-than-expected earnings for the second quarter on Tuesday, despite remaining under heavy restrictions by regulators for an assortment of scandals in recent years.
The San Francisco-based bank reported second-quarter earnings of $6.21 billion, a 19% increase over the $5.19 billion for the same period last year. Wells Fargo & Co. reported earnings of $1.30 per share, compared to 98 cents per share in the same period last year.
The results topped Wall Street expectations. Analysts surveyed by FactSet expected earnings per share of $1.17 for the second quarter.
Like other banks, Wells Fargo has benefited from a rise in interest rates, which has somewhat offset the restrictions placed on the bank by regulators. Last year, the Federal Reserve capped the size of Wells Fargo’s assets after an assortment of scandals, beginning in 2016 with the uncovering of millions of fake checking accounts its employees opened to meet sales quotas.
The Federal Reserve has not said when it will remove its restrictions on Wells’ business. Federal Reserve Chairman Jerome Powell said earlier this year that the bank had more work to do to meet the Fed’s demands.
Wells is still without a permanent CEO after Tim Sloan abruptly resigned after a poor performance defending the bank in front of Congress in March.
The biggest U.S. mortgage lender posted revenue of $21.58 billion, which was essentially flat quarter-over-quarter, but beat forecasts. Analysts surveyed by FactSet expected revenue of $20.9 billion.
Wells Fargo shares have risen about 1% since the beginning of the year, but has declined 16% in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on WFC at https://www.zacks.com/ap/WFC
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