(Sharecast News) - Wells Fargo posted some disappointing third-quarter earnings on Wednesday as low rates hurt the bank's net interest income throughout the period.
The San Francisco-based bank reported earnings per shares of $0.42 each, shy of estimates for an EPS of $0.45, while revenues, on the other hand, came to $18.86bn for the three months ended 30 September, ahead of the $17.97bn expected on the Street.
Net interest income fell 19% year-on-year to $9.36bn as the Federal Reserve continued to keep interest rates at historically low levels as a result of the ongoing Covid-19 pandemic.
Elsewhere, Wells Fargo said it had set aside $769.0m for credit losses in the third quarter, well below estimates of $1.76bn and the $9.5bn it squirrelled away in the second quarter.
Non-interest income topped expectations, coming in at $9.5bn, as deposit, card and investment fees grew quarter-on-quarter, while mortgage-banking income improved to $1.6bn from the $317.0m recorded in the prior quarter.
Chief executive Charlie Scharf said: "Our third-quarter results reflect the impact of aggressive monetary and fiscal stimulus on the US economy.
"The trajectory of the economic recovery remains unclear as the negative impact of Covid continues and further fiscal stimulus is uncertain, but we remain strong with our capital and liquidity levels well above regulatory minimums."
As of 1350 BST, Wells Fargo shares were down 1.82% in pre-market trading at $24.29 each.
** World shares up 0.5% after gains in Asia, Europe* Dollar dips on expectations of low U.S. rates* Gold at 3-1/2-month high, copper up, zinc shines* Global asset performance http://tmsnrt.rs/2yaDPgn* World FX rates http://tmsnrt.rs/2egbfVhBy Danilo ...