NYSE$WFC

Wells Fargo & Co · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Wells Fargo reported net income of $4.9 billion and EPS of $1.33 for Q2 2024.

Wells Fargo reported a second quarter net income of $4.9 billion, or $1.33 per diluted share. The company saw growth in fee-based revenue offsetting a decline in net interest income. Strong performance was noted in investment advisory, trading, and investment banking fees.

  • Diluted earnings per common share grew year-over-year.
  • Fee-based revenue increased, offsetting a decline in net interest income.
  • Strong performance in investment advisory, trading, and investment banking fees.
  • Capital position remains strong, with continued repurchase of common stock.

Headline financials

Total Revenue

$20.7B

Previous: $20.5B+0.8%
EPS

$1.33

Previous: $1.25+6.4%
Net Interest Margin

2.8%

Previous: 3.1%-11.0%
Efficiency Ratio

64.0%

Previous: 63.0%+1.6%
Common Equity Tier 1 (CET1) Ratio

11.0%

No prior period
Return on Assets (ROA)

1.0%

No prior period
Return on Equity (ROE)

11.5%

No prior period
Return on Average Tangible Common Equity (ROTCE)

13.7%

No prior period
Free Cash Flow

$4.91B

Previous: $4.94B-0.6%
Net Income

$4.91B

Previous: $4.94B-0.6%
Operating Income

$6.61B

Previous: $8.98B-26.4%
Gross Profit

$19.3B

Previous: $18.6B+3.9%
Cash & Equivalents

$32.7B

Previous: $31.9B+2.5%
Total Assets

$1.94T

Previous: $1.88T+3.4%

Revenue & EPS history

Wells Fargo · Revenue · Quarterly

$20.7B

Q2 2024+0.8%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Wells Fargo · $21.6B total across 4 segments · Q3 2023

  • Consumer Banking and Lending
    $9.58B+3.3%
  • Corporate and Investment Banking
    $4.92B+21.3%
  • Wealth and Investment Management
    $3.7B+1.0%
  • Commercial Banking
    $3.41B+15.3%

Forward guidance

Wells Fargo expects to increase its third quarter common stock dividend by 14%, subject to approval by the Company’s Board of Directors at its regularly scheduled meeting later this month. The Company’s stress capital buffer (SCB) for October 1, 2024, through September 30, 2025, is expected to be 3.8%; the Federal Reserve Board has indicated that it will publish our final SCB by August 31, 2024.

Tailwinds

  • Expected increase in third quarter common stock dividend by 14%.
  • Stress capital buffer (SCB) for October 1, 2024, through September 30, 2025, is expected to be 3.8%.
  • Continued execution on strategy to better serve customers and drive higher returns over time.
  • Investments in branch network to improve customer experience.
  • Investments in talent and technology to capture opportunity in commercial businesses.

Headwinds

  • Risk and control work remains top priority.
  • Uncertainty regarding final SCB publication by the Federal Reserve Board.
  • Dependence on Board of Directors' approval for dividend increase.
  • Lower net interest income due to higher interest rates on funding costs.
  • Commercial loan demand remained tepid.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+0.3%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

56%

40 / 72 earnings

Positive

+7.6%

Q3 2024

Best reaction

-10.9%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-4.3%-6.0%-15.2%
Q1 2026+0.2%-6.0%-15.2%
Q3 2025+7.0%+5.5%+7.3%
Q2 2025+2.0%-0.5%+4.6%
Q1 2025-1.0%+1.4%+14.8%
Q4 2024+6.7%+8.3%+12.3%
Q3 2024+7.6%+10.6%+21.3%
Q2 2024-4.0%+1.2%-12.3%
Q1 2024+0.5%+0.9%+9.2%
Q4 2023-4.5%-4.8%-2.0%
Q3 2023+4.8%+4.5%+2.9%
Q2 2023+2.4%+5.8%+0.0%
Q1 2023+4.1%+6.5%-5.5%
Q4 2022+3.0%+1.3%+10.9%
Q3 2022+3.7%+2.9%+12.2%
Q2 2022+6.3%+10.3%+18.6%
Q1 2022-2.8%-1.5%-12.2%
Q4 2021+1.2%-0.8%+4.1%
Q3 2021+5.1%+9.3%+10.7%
Q2 2021+4.1%-0.4%+16.5%
Q1 2021+6.2%+10.3%+18.0%
Q4 2020-6.1%-6.6%-3.5%
Q3 2020-7.2%-8.9%-2.7%
Q2 2020-0.2%-1.8%-1.5%
Q1 2020-9.5%-9.7%-23.4%
Q4 2019-7.3%-5.6%-7.7%
Q3 2019+0.6%+1.4%+8.6%
Q2 2019-3.2%-1.5%-7.1%
Q1 2019-2.0%-0.4%-1.2%
Q4 2018+1.1%+3.3%+0.2%
Q3 2018+3.5%+5.9%+3.1%
Q2 2018+1.7%+1.0%+3.6%
Q1 2018-3.6%-4.4%+3.3%
Q4 2017-0.8%+1.4%-10.9%
Q3 2017-2.6%-3.3%-2.5%
Q2 2017-1.6%-1.2%-6.6%
Q1 2017-0.8%-1.3%-0.2%
Q4 2016-1.3%-0.4%+4.3%
Q3 2016-0.6%+1.1%+15.6%
Q2 2016-1.3%-0.7%-2.1%
Q4 2015-4.8%
Q3 2015+1.6%
Q2 2015+1.8%
Q1 2015+0.4%
Q4 2014-2.2%
Q3 2014-4.7%
Q2 2014-1.0%
Q1 2014+0.8%
Q4 2013+1.8%
Q3 2013+0.7%
Q2 2013+3.5%
Q1 2013-2.5%
Q4 2012-1.8%
Q3 2012-3.6%
Q2 2012+3.6%
Q1 2012-2.6%
Q4 2011+0.8%
Q3 2011-1.7%
Q2 2011-10.9%
Q1 2011+0.3%
Q4 2007+2.6%
Q4 2010+2.6%
Q3 2010+5.8%
Q2 2010+0.1%
Q1 2010+5.7%
Q1 2009-0.3%
Q4 2009-0.3%
Q3 2008+4.1%
Q3 2009+4.1%
Q2 2009+2.4%
Q4 2008+2.4%
Q2 2008+2.4%

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