Wells Fargo (NYSE: WFC) reported first-quarter earnings results that were well below expectations as the company set aside money for credit losses amid the coronavirus pandemic.
The banking giant reported a profit of just one cent per share while analysts expected earnings of 33 cents per share. Revenue of $17.717 billion also missed an estimate of $19.284 billion. Wells reported earnings of $1.20 per share in the year-earlier period.
Wells noted, however, its results suffered from a “reserve build and an impairment of securities” that resulted in a loss of 73 cents per share.
“Our results were impacted by a $3.1-billion reserve build, which reflected the expected impact these unprecedented times could have on our customers,” said CFO John Shrewsberry.
Net interest income at WFC fell to $11.31 billion in the quarter from about $12.3 billion in the year-earlier period. Credit card fees fell 6% year over year to $892 million.
Wells Fargo’s quarterly results were the first ones since the coronavirus outbreak paralyzed the global economy, with governments pushing people to stay at home to curb the spread.
The market drop, along with dimming economic prospects, sparked a flurry of stimulus measures from the government. One of those measures it the Paycheck Protection Program, which allocates nearly $350 billion in forgivable loans to small businesses.
Shares in WFC acquired 31 cents, or 1%, early Tuesday to $31.74.