Wells Fargo Shares Dip In Premarket Trade, As Revenue Misses Estimates

Wells Fargo & Co. shares fell 1.1% in premarket trade, after the San Francisco-based bank reported weaker-than-expected revenue for the second quarter. Wells Fargo said it had net income of $5.72 billion, or 1.03 a share, in the quarter, compared with $5.73 billion, or $1.01 a share, in the year-earlier period. Revenue rose to $21.3 billion from $21.1 billion. The FactSet consensus was for EPS of $1.03 and revenue of $21.7 billion. Average loans rose to $870.4 billion from $831 billion, while allowance for credit losses as a percentage of total loans edged back to 1.42% from 1.67% a year ago. Net interest income rose to $11.3 billion, primarily due to broad-based asset growth including investment securities, loans, trading assets and mortgages held-for-sale, the bank said in a statement. Shares have risen 3.5% in the year so far, while the S&P 500 has gained 2%.