NYSE$WFC

Wells Fargo & Co · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported a net income of $2.9 billion and diluted EPS of $0.67, which included a previously disclosed impact of ($0.70) per share from litigation, regulatory, and customer remediation matters.

Wells Fargo reported a fourth-quarter net income of $2.9 billion, with diluted earnings per share (EPS) of $0.67. The results were impacted by $3.3 billion in operating losses related to historical matters and other expenses, but were offset by strong net interest income growth.

  • Net income for the quarter was $2.9 billion, or $0.67 per diluted share, including a ($0.70) per share impact from litigation, regulatory, and customer remediation matters.
  • Total revenue was $19.66 billion.
  • The company experienced strong net interest income growth due to rising interest rates and higher loan balances.
  • The company continues to invest in digital capabilities and innovative products.

Headline financials

Total Revenue

$19.7B

Previous: $20.9B-5.7%
EPS (adj)

$0.67

Previous: $1.38-51.4%
Net Interest Margin

3.1%

No prior period
Net Income

$2.86B

Previous: $5.47B-47.6%
Cash & Equivalents

$159B

Previous: $234B-32.1%
Total Assets

$1.88T

Previous: $1.95T-3.4%
Stock-Based Comp

$978M

Previous: $1.01B-2.7%

Revenue & EPS history

Wells Fargo · Revenue · Quarterly

$19.7B

Q4 2022-5.7%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Wells Fargo · $20.4B total across 4 segments · Q4 2022

  • Consumer Banking and Lending
    $9.46B
  • Corporate and Investment Banking
    $4.14B
  • Wealth and Investment Management
    $3.7B
  • Commercial Banking
    $3.15B

Forward guidance

The company is carefully watching the impact of higher rates on customers and expects to see deposit balances and credit quality continue to return toward pre-pandemic levels. They are prioritizing building an appropriate risk and control infrastructure and are optimistic about their future as they continue to advance efficiency initiatives, invest to better serve customers, and grow their business.

Tailwinds

  • Continue to invest in the future.
  • Enhanced digital and mobile capabilities to better serve our customers
  • Launched innovative products and solutions, including a new small dollar product – Flex Loan
  • Launched two new credit cards
  • Launched a new digital banking platform for our commercial clients.

Headwinds

  • The quarter was significantly impacted by previously disclosed operating losses
  • Customers have remained resilient with deposit balances, consumer spending, and credit quality still stronger than pre-pandemic levels.
  • Carefully watching the impact of higher rates on our customers
  • Expect to see deposit balances and credit quality continue to return toward pre-pandemic levels.
  • Continue to prioritize building an appropriate risk and control infrastructure

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 Q4 2022

Historical avgQ4 2022

+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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