Q1 Snap: no evidence of a turnaround as yet
The headline EPS included a lot of one-offs and excluding these, adj. EPS of $0.96 (by our calculations) was 9% below consensus. One-offs included $845m of gains on sale, $250m of unrealised gains and $550m of reserve releases. These were offset by ~$670m of litigation accruals. Average loans were down 1% YoY and stable QoQ, which was largely in line with our expectations. However, NIM was flat QoQ (vs consensus expectations for a 4bp increase), with the benefit of higher interest rates offset by hedge ineffectiveness accounting and lower loan swap income. Overall, the weak momentum continues and there's no indication yet that WFC has managed to turn the corner.Wells Fargo & Company is a financial and a bank holding company. Through its subsidiaries, the company provides banking, investment and mortgage products and services, as well as consumer and commercial finance. The company provides consumer financial products and services including checking and savings accounts, credit and debit cards, and automobile, student, mortgage and home equity and small business lending, as well as financial planning, private banking, investment management, and fiduciary services. The company also provides financial solutions including commercial loans and lines of credit, letters of credit, asset-based lending, trade financing, treasury management, and investment banking services.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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