Wells Fargo sees 1Q earnings growth, revenue declines

By EarningsFOXBusiness

Wells Fargo reportedly facing record fine

FOX Business’ Kristina Partsinevelos reports that the Consumer Financial Protection Bureau is considering hitting Wells Fargo with a very large fine.

Wells Fargo, the third largest U.S. bank by assets, confirmed in its first quarter results released Friday morning that regulators have offered a $1 billion fine to resolve auto insurance and mortgage lending abuses.

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The company did not disclose whether it would agree to settle with the federal Consumer Financial Protection Bureau by paying a $1 billion fine.

"At this time, we are unable to predict final resolution of the CFPB/OCC matter and cannot reasonably estimate our related loss contingency."

In the first quarter of 2018,  Wells Fargo’s revenue decreased, year-over-year, but the company still managed to grow its earnings.

Wells Fargo earned $1.12 per share (adjusted) on revenue of $21.9 billion. Analysts polled by Thomson Reuters forecast the bank would earn $1.06 per share on revenue of $21.73 billion. In the first quarter of 2017, Wells Fargo earned $1.00 per share on revenue of $22 billion.

The bank said it may have to revise its quarterly results to reflect the final settlement.

Wells Fargo’s CEO Tim Sloane said the bank had already closed 58 branches in the first quarter and will close a total of 300 this year.