Here comes Wells Fargo ...
Wall Street is expecting the bank, which has taken a beating on Capitol Hill and in the press for its myriad consumer banking scandals, to deliver earnings of $1.03 per share, down from $1.05 last quarter.
Here's what else analysts will be looking at:
- Revenue of $22.4 billion, down from $22.5 billion in the second quarter.
- Net income of $5.13 billion, down from $5.28 billion in the second quarter.
- Net charge offs: Hit a post-crisis low of 0.27% in the second quarter, but Citi and JPMorgan each reported increases in the third quarter and increased reserves for loan losses.
The bank has faced numerous challenges stemming from its fake accounts scandal that broke a year ago. In September 2016, Wells reached a settlement with regulators after it was found that employees opened 2 million accounts in customers names without their knowledge between 2011 and 2015.
The scandal resulted in multiple congressional hearings and the eventual ouster of former CEO John Stumpf. Also, reports suggest that the fake accounts practices may have taken place for many years prior to the original findings and resulted in even more fraudulent accounts.
Current CEO Tim Sloan was grilled by Capitol Hill lawmakers on October 3 for the one year anniversary of the scandal
Analysts will also expect updates on efforts to decrease management costs as well as any new details on the firms ongoing legal inquiries and litigation.
Citi and JPMorgan kicked off the earnings cycle for US banks Thursday, each handily beating earnings estimates.