Q3 2024 Wells Fargo & Co Earnings Call Transcript
Key Points
- Wells Fargo & Co (WFC) reported a solid net income of $5.1 billion for the third quarter, with diluted earnings per share of $1.42.
- The company has successfully diversified its revenue sources, with fee-based revenue growing by 16% in the first nine months of the year.
- Wells Fargo & Co (WFC) has maintained strong credit discipline, resulting in improved credit performance and lower losses in commercial real estate and industrial loan portfolios.
- The company has a strong capital position, with a CET1 ratio of 11.3%, and has returned significant capital to shareholders through stock repurchases and increased dividends.
- Strategic investments in consumer and small business banking are yielding growth, with net checking accounts growing for three consecutive quarters and an increase in mobile active users.
- Average loan balances have declined, reflecting weak commercial loan demand and economic uncertainty.
- Net interest income declined by 2% from the second quarter, impacted by increased pricing on sweep deposits and customer migration to higher-yielding deposit products.
- The office market remains weak, and Wells Fargo & Co (WFC) expects additional charge-offs in its commercial real estate office portfolio.
- Operating losses have been high in the first half of the year, although they have declined in the third quarter.
- The company is still under regulatory scrutiny, with ongoing work required to address issues related to risk and control infrastructure.
Welcome. And thank you for joining the Wells Fargo third quarter 2024 earnings conference call. (Operator Instructions) Please note that today's call is being recorded.
I would now like to turn the call over to John Campbell, Director of Investor Relations. Sir, you may begin the conference.
Thank you. Good morning, everyone. Thank you for joining our call today where our CEO, Charlie Scharf; and our CFO, Mike Santomassimo, will discuss third quarter results and answer your questions. This call is being recorded.
Before we get started, I would like to remind you that our third quarter earnings materials, including the release, financial supplement and presentation deck are available on our website at wellsfargo.com. I'd also like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties.
Factors that may cause actual results to differ materially from expectations detailed in our SEC filings, including the Form 8
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