Wells Fargo & Co. announced on Thursday that its revenue in the first quarter of 2022 reached $17.6 billion, lower than the forecast $17.8 billion and 5% less than the same quarter in 2021. Earnings were down 21% to $3.7 billion, with diluted earnings per share (EPS) at $0.88, a drop of 13% annually.
"Our internal indicators continue to point towards the strength of our customers’ financial position, but the Federal Reserve has made it clear that it will take actions necessary to reduce inflation and this will certainly reduce economic growth. In addition, the war in Ukraine adds additional risk to the downside," said CEO Charlie Scharf. "While we will likely see an increase in credit losses from historical lows, we should be a net beneficiary as we will benefit from rising rates, we have a strong capital position, and our lower expense base creates greater margins from which to invest."
Wells Fargo stock was down 3.38% in premarket trade after the report.
