Wells Fargo CEO Sees Resilient Economy, Says Oil Shock Will ‘Take Time’ To Hit

• First-quarter growth was driven by gains across consumer banking, commercial banking, investment banking, and wealth management divisions.
• Wealth and Investment Management delivered a 14% year-over-year revenue increase.
• Net income rose 7% year over year to $5.25 billion, while Wells Fargo returned $4 billion to shareholders via buybacks.

Wells Fargo & Co. (WFC) CEO Charlie Scharf expressed confidence in the broader economy despite ongoing market turbulence and noted steady financial conditions among consumers and businesses. 

Scharf added that the effects of higher oil prices are likely to unfold gradually. 

“While markets have been volatile, we still see continued resiliency in the underlying economy and the financial health of the consumers and businesses we serve remains strong, though the impact of higher oil prices will likely take some time to materialize.”

-Charlie Scharf, Chairman and CEO, Wells Fargo

Strong Q1 Financial Performance

The financial services giant reported a first-quarter revenue of $21.44 billion and an earnings per share (EPS) of $1.60. While revenue slightly missed the analysts’ consensus estimate of $21.84 billion, EPS came in above the $1.58 estimate, according to Fiscal AI data. 

Wells Fargo recorded revenue increases across all its major divisions. Consumer banking and commercial banking each posted 7% gains, while the corporate and investment banking arm saw particularly strong performance in both advisory services and trading activity. The wealth management division also expanded, supported by rising client assets, said Scharf.

Wells Fargo stock traded over 2% lower in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory amid ‘high’ message volume levels. 

Wealth, Asset Expansion And Capital Returns

Wealth and Investment Management continued to be a key growth driver, with revenue up 14% year over year (YoY). The business benefited from higher asset-based fees and increased client asset valuations, which helped lift total company-wide client assets to $2.48 trillion.

Net income came in at $5.25 billion, a 7% increase YoY. The company returned $4 billion to shareholders through buybacks, maintaining strong capital levels with a Common Equity Tier 1 ratio of 10.3%

WFC stock has declined by 7% year-to-date. 

Also See: Why Is HUBC Stock Spiking After A Sharp Selloff?

For updates and corrections, email newsroom[at]stocktwits[dot]com.