NYSE$WFC

Wells Fargo & Co · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Wells Fargo reported solid results driven by revenue growth and expense decline.

Wells Fargo reported a net income of $5.8 billion, or $1.48 per diluted share, for Q3 2023. Revenue grew to $20.9 billion, driven by higher net interest income and noninterest income. Expenses decreased due to lower operating losses. The company repurchased 33.8 million shares of common stock for $1.5 billion.

  • Net income for the third quarter of 2023 was $5.8 billion, or $1.48 per diluted share.
  • Total revenue reached $20.9 billion, reflecting growth in both net interest income and noninterest income.
  • Expenses decreased due to lower operating losses and efficiency initiatives.
  • The company repurchased 33.8 million shares of common stock for $1.5 billion during the quarter.

Headline financials

Total Revenue

$20.9B

Previous: $19.5B+6.9%
EPS (adj)

$1.48

Previous: $0.85+74.1%
Net Interest Margin

3.0%

Previous: 2.8%+7.1%
Efficiency Ratio

63.0%

Previous: 73.0%-13.7%
Free Cash Flow

$5.77B

Previous: $3.53B+63.5%
Net Income

$5.77B

Previous: $3.53B+63.5%
Operating Income

$8.41B

Previous: $14.2B-40.6%
Gross Profit

$19.5B

Previous: $18.5B+5.5%
Cash & Equivalents

$30.8B

Previous: $165B-81.4%
Total Assets

$1.91T

Previous: $1.88T+1.7%

Revenue & EPS history

Wells Fargo · Revenue · Quarterly

$20.9B

Q3 2023+6.9%vs Q3 2022
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

The company is focused on risk and control work, advancing its business strategy, and returning excess capital to shareholders. However, proposed bank capital rules include higher capital requirements.

Tailwinds

  • Making progress on risk and control work.
  • Advancing business strategy.
  • Enhancing digital capabilities.
  • Increased common stock dividend by 17%.
  • Starting from a strong capital position.

Headwinds

  • Seeing the impact of the slowing economy.
  • Loan balances declining.
  • Charge-offs continuing to deteriorate modestly.
  • Proposed bank capital rules include higher capital requirements.
  • Uncertainty about future economic conditions.

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 Q3 2023

Historical avgQ3 2023

+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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