Wells Fargo (NYSE:WFC) shares dropped by over 2% today after the financial services major announced its fourth-quarter results. Revenue rose by 2% year-over-year to $20.48 billion, surpassing expectations by $190 million. Similarly, EPS of $1.29 outperformed estimates of $0.86 per share.
During the quarter, net interest income dropped by 5% year-over-year to $12.77 billion due to lower deposits and loan balances. However, noninterest income rose by 17% based on gains in its affiliated venture capital business. It was further helped by higher revenue and fees in its Markets business and Investment Banking segment. While noninterest expenses declined by 2% to $15.79 billion, its provision for credit losses shot up to $1.28 billion from $957 million in the year-ago period.
Wells Fargo’s fourth-quarter results included a $1.9 billion expense from an FDIC special assessment and severance expenses of $969 million. Nevertheless, CEO Charlie Scharf expects improving growth, market share gains, and WFC’s home lending strategy to drive higher returns and earnings over the coming years.
What is WFC Stock Target?
Shares of the company have surged by nearly 15% over the past year. Overall, the Street has a Moderate Buy consensus rating on Wells Fargo, and the average WFC price target of $54 points to a modest 10.1% potential upside in the stock.
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