Wells Fargo & Company (WFC) has reported 5.40 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $5,274 million, or $0.96 a share in the quarter, compared with $5,575 million, or $1 a share for the same period last year.
Revenue during the quarter went up marginally by 0.11 percent to $20,777 million from $20,755 million in the previous year period. Net interest income for the quarter rose 7.02 percent over the prior year period to $12,402 million. Non-interest income for the quarter fell 8.18 percent over the last year period to $9,180 million.
Wells Fargo & Company has made provision of $805 million for loan losses during the quarter, down 3.13 percent from $831 million in the same period last year.
Net interest margin contracted 5 basis points to 2.87 percent in the quarter from 2.92 percent in the last year period. Efficiency ratio for the quarter deteriorated to 61.20 percent from 58.40 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
Chief executive officer Tim Sloan said, "We continued to make progress in the fourth quarter in rebuilding the trust of our customers, team members and other key stakeholders. I am pleased with the progress we have made in customer remediation, the ongoing review of sales practices across the company and fulfilling our regulatory requirements for sales practices matters. As planned, we launched our new Retail Bank compensation program this month, which is based on building lifelong relationships with our customers. While we have more work to do, I am proud of the effort of our entire team to make things right for our customers and team members and to continue building a better Wells Fargo for the future."
Liabilities outpace assets growthTotal assets stood at $1,930,115 million as on Dec. 31, 2016, up 7.97 percent compared with $1,787,632 million on Dec. 31, 2015. On the other hand, total liabilities stood at $1,729,618 million as on Dec. 31, 2016, up 8.53 percent from $1,593,741 million on Dec. 31, 2015.
Loans outpace deposit growthNet loans stood at $956,185 million as on Dec. 31, 2016, up 5.65 percent compared with $905,014 million on Dec. 31, 2015. Deposits stood at $1,306,079 million as on Dec. 31, 2016, up 6.77 percent compared with $1,223,312 million on Dec. 31, 2015.
Investments stood at $482,344 million as on Dec. 31, 2016, up 16.97 percent or $69,974 million from year-ago. Shareholders equity stood at $200,497 million as on Dec. 31, 2016, up 3.41 percent or $6,606 million from year-ago.
Return on assets moved down 16 basis points to 1.08 percent in the quarter from 1.24 percent in the last year period. At the same time, return on equity decreased 99 basis points to 10.94 percent in the quarter from 11.93 percent in the last year period.
Nonperforming assets moved down 11.28 percent or $1,445 million to $11,362 million on Dec. 31, 2016 from $12,807 million on Dec. 31, 2015.
Book value per share was $35.18 for the quarter, up 4.14 percent or $1.40 compared to $33.78 for the same period last year.
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