Wells Fargo & Company (WFC) has reported a marginal fall of 0.09 percent in profit for the quarter ended Mar. 31, 2017. The company has earned $5,457 million, or $1 a share, compared with $5,462 million or $0.99 a share, a year ago. Revenue during the quarter went up marginally by 1.36 percent to $21,397 million from $21,109 million in the previous year period. Net interest income for the quarter rose 5.43 percent over the prior year period to $12,300 million. Non-interest income for the quarter fell 7.85 percent over the last year period to $9,702 million.
Wells Fargo & Co has made provision of $605 million for loan losses during the quarter, down 44.29 percent from $1,086 million in the same period last year.
Net interest margin contracted 3 basis points to 2.87 percent in the quarter from 2.90 percent in the last year period. Efficiency ratio for the quarter deteriorated to 62.70 percent from 58.70 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
Chief Executive Officer Tim Sloan said, "Wells Fargo continued to make meaningful progress in the first quarter in rebuilding trust with customers and other important stakeholders, while producing solid financial results. We have taken significant actions throughout the company to date and we are committed to building a better bank as we move Wells Fargo forward. Earlier this week, the independent directors of Wells Fargo’s Board of Directors issued a report on their investigation into the company's retail banking sales practices. The findings are valuable to us and beneficial in helping to identify areas for further improvement. While we have more work to do, I am pleased with all we have accomplished thus far. Our 273,000 team members have remained committed to helping our customers succeed financially, as reflected in improved retail customer service scores, record levels of deposits, more primary consumer checking customers, record client assets in Wealth and Investment Management, and industry-leading mortgage originations."
Liabilities outpace assets growth
Total assets stood at $1,951,564 million as on Mar. 31, 2017, up 5.54 percent compared with $1,849,182 million on Mar. 31, 2016. On the other hand, total liabilities stood at $1,749,075 million as on Mar. 31, 2017, up 5.96 percent from $1,650,678 million on Mar. 31, 2016. Loans outpace deposit growth
Net loans stood at $947,237 million as on Mar. 31, 2017, up 1.24 percent compared with $935,637 million on Mar. 31, 2016. Deposits stood at $1,325,444 million as on Mar. 31, 2017, up 6.76 percent compared with $1,241,490 million on Mar. 31, 2016. Investments stood at $487,886 million as on Mar. 31, 2017, down 31.15 percent or $220,718 million from year-ago. Shareholders equity stood at $202,489 million as on Mar. 31, 2017, up 2.01 percent or $3,985 million from year-ago.
Return on assets moved down 6 basis points to 1.15 percent in the quarter from 1.21 percent in the last year period. At the same time, return on equity decreased 21 basis points to 11.54 percent in the quarter from 11.75 percent in the last year period.
Nonperforming assets moved down 21.08 percent or $2,849 million to $10,664 million on Mar. 31, 2017 from $13,513 million on Mar. 31, 2016.
Book value per share was $35.70 for the quarter, up 3.24 percent or $1.12 compared to $34.58 for the same period last year.
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