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Investing.com -- Wells Fargo & Company (NYSE:WFC) reported better-than-expected top and bottom line for the second quarter, but its net interest income (NII) fell short of expectations, pushing its shares slightly lower in the premarket trade Tuesday.
The bank delivered second-quarter earnings of $1.60 per share, ahead of the consensus estimate of $1.40. Revenue for the period totaled $20.82 billion, also above the $20.76 billion estimated by analysts.
Wells Fargo reported net interest income of $11.71 billion, just below the $11.83 billion estimate, while net interest margin stood at 2.68%, compared to the forecasted 2.7%.
“Our second quarter results reflect the progress we are making to consistently produce stronger financial results with net income and diluted earnings per share up from both the first quarter and a year ago," said Wells Fargo CEO Charlie Scharf.
“During the first half of this year, we repurchased over $6 billion of common stock and as previously announced, we expect to increase our third quarter common stock dividend by 12.5%, subject to approval by the Company’s Board of Directors at its regularly scheduled meeting later this month,” Scharf added.
The bank’s consumer banking and lending revenue was reported at $9.23 billion.
Provision for credit losses came in at $1.01 billion, lower than the expected $1.16 billion.
Non-interest expenses were $13.38 billion, broadly in line with the $13.4 billion estimate. Investment banking fees totaled $696 million versus $703.1 million projected.
The efficiency ratio improved to 64% from the expected 64.8%.
Return on assets was 1.14%, while return on equity reached 12.8%, ahead of the 11.3% estimate.
Wells Fargo’s common equity Tier 1 ratio matched forecasts at 11.1%.
Return on tangible common equity stood at 15.2%, topping expectations of 13.5%.