=Wells Fargo (WFC) reported earnings on Tue 14 Jan 20 (b/o)

Wells Fargo misses by $0.17, misses on revs

Reports Q4 (Dec) adjusted earnings of $0.93 per share, $0.17 worse than the S&P Capital IQ Consensus of $1.10; revenues fell 5.4% year/year to $19.86 bln vs the $20.11 bln S&P Capital IQ Consensus.

Q4 net interest margin of 2.53%, down 13 basis points. Q4 efficiency ratio 78.6%. Average loans were $956.5 billion in the fourth quarter, up $6.8 billion from the third quarter. Period-end loan balances were $962.3 billion at December 31, 2019, up $7.4 billion from September 30, 2019.

Mortgage orginations of $60 bln, up 58% yr/yr.

"Wells Fargo reported $2.9 billion of net income in the fourth quarter and diluted earnings per share of $0.60, which included the impact of $1.5 billion, or $(0.33) per share, of litigation accruals for a variety of matters, including previously disclosed retail sales practices matters. Our net interest income declined in the fourth quarter driven predominantly by the impact of the lower interest rate environment. In addition, while we are spending what is necessary in order to improve risk management, our other expenses were too high and becoming more efficient remains a top priority."