Wells Fargo (NYSE:WFC) beat Wall Street estimates on the top and bottom lines for the second quarter, sending its stock higher Friday.
The company recorded $1.25 in earnings per share vs $1.16 expected; $20.53 billion in revenue vs $20.12 billion expected
The bank’s total net income was $4.9 billion, up from $3.1 billion in the same quarter last year.
Higher interest rates helped fuel the increase. Net interest income rose 29% year over year to $13.2 billion. Consumer and small business banking saw earnings of nearly $6.6 billion, up 19% from $5.5 billion last year.
Wells Fargo hiked its full-year guidance for net interest income, saying it expected the metric to rise 14% in 2023 instead of the previous projection for 10%
However, net interest income was down slightly from the first quarter of this year. The bank also reported quarter-over-quarter declines of 2% for commercial and consumer deposits.
“Our company remains strong and we have significant opportunities to continue to improve how we serve our customers. The U.S. economy continues to perform better than many had expected, and although there will likely be continued economic slowing and uncertainty remains, it is quite possible the range of scenarios will narrow over the next few quarters,” CEO Charlie Scharf said in a press release.
The increased earnings came despite Wells Fargo booking a $1.7 billion provision for credit losses. That is up from $580 million a year ago, and $1.2 billion in the first quarter.
WFC shares rose $1.23, or 2.8%, to $44.94.