Wells Fargo profit beats estimates on cost controls, rise in loans
) reported higher quarterly profit on Tuesday despite flat revenue as the bank benefited from aggressive cost-cutting.
Revenue declined at Wells’ community bank and wholesale bank as net interest income was squeezed by lower interest rates and higher deposit costs. But profit in those segments jumped 26% and 6%, respectively, due to lower overall costs.Wells Fargo, the fourth largest U.S.
Now the San Francisco-based bank must also contend with fresh macroeconomic uncertainty from a changing interest rate environment that’s pressuring lending margins across the industry. The U.S. Federal Reserve is widely expected to cut rates later this month. Wells Fargo has cut its net interest income guidance twice to reflect the broader economic outlook. Wells Fargo relies heavily on interest rates to pad its revenue since it has tons of rate sensitive deposits and mortgage securities.
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