Fri Oct 11 11:20:00 UTC 2024: ## Wells Fargo Reports Lower Earnings Amid Interest Rate Pressure
**San Francisco, CA** – Wells Fargo reported lower earnings and revenue in the third quarter of 2024, driven by a decline in net interest income. The bank’s net interest income, a key measure of lending profitability, fell 11% from the same quarter last year, reaching $11.69 billion. This was below analysts’ expectations of $11.9 billion.
The decline in net interest income was attributed to higher funding costs as customers shift to higher-yielding deposit products. Despite this, Wells Fargo CEO Charles Scharf highlighted the bank’s strategic investments in various businesses and the growth in fee-based revenue, which offset some of the impact.
Overall, Wells Fargo’s net income fell to $5.11 billion in the third quarter, down from $5.77 billion in the same period last year. Revenue also dipped to $20.37 billion from $20.86 billion.
The bank set aside $1.07 billion for credit losses, a slight decrease from the previous quarter. Wells Fargo also repurchased $3.5 billion of common stock in the third quarter, bringing the total for the year to over $15 billion, representing a 60% increase from 2023.
Despite the lower earnings, Wells Fargo shares rose 3% in premarket trading after the results were announced. The bank’s shares are up 17% in 2024, trailing the S&P 500’s performance.
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