Wells Fargo earnings beats by a penny
For Wells, the second quarter beat continues a streak on the market where the retail bank met or topped analyst expectations. The bank also beat for the first quarter of this year, at earnings of $1.04 a share.
However, the market didn't take the news well. Wells Fargo missed on its top line with about $21.3 billion in revenue, falling short of expectations. The stock is down about 1% going into the open this morning.
Wells Fargo has been one of the stronger-performing banks coming out of the financial crisis, taking on lending in residential homes at a time when much of Wall Street had given up on it under increased regulatory pressure.
Wells Fargo has taken on new lines of business, including its jump into the investment banking space. Some analysts had speculated investment banking and trading revenues at big banks would take a hit, to which Wells has less exposure.
That is not to say Wells Fargo's lines of business are immune to external pressures. The bank also stayed the course in student lending at a time when most of Wall Street bailed on the industry. One leading student lender took a hit earlier this week when it reported weakness in the quality of its higher-risk loans. JPMorgan's earnings announcement preceding Wells Fargo's revealed the bank recorded lower mortgage banking revenue, as well.
There are still more bank earnings reports due this week. Bank of America will report its results Wednesday morning and on Thursday Goldman Sachs and Citigroup will announce earnings.