Q2 Snap: Issues still hampering revenue growth
The headline EPS included several sizeable one-offs and excluding these, adj. EPS of $1.12 (by our calculations) was in line with consensus. One-offs included $479m of gains on sale, $619m of operating losses (related to previously disclosed sales practice matters), a $481m discrete tax item, $214m OTTI and $150m of reserve releases. Loans were down 1% YoY, which was below our expectations. However, NIM was up 9bp QoQ (vs consensus expectations for a 2bp increase) thanks to positive asset mix shift and good asset yield expansion. The tepid loan growth and weak non interest revenues underline that WFC will continue to face stronger earnings headwinds than its peers.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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