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Wells Fargo Q2 Profit Beats Estimates; Revenue Flat - Quick Facts

Wells Fargo & Company (WFC) said its second-quarter net income was up 26% year-on-year driven by net discrete tax expense of $481 million in the second quarter of previous year. The company grew period-end loans and deposits, as well as pre-tax pre-provision profit from prior year. Revenue was flat compared with last year, as lower net interest income was offset by higher gains from sales of Pick-a-Pay PCI loans and higher service charges on deposit accounts.

For the second-quarter, earnings per share was $1.30, compared to $0.98, last year. On average, 26 analysts polled by Thomson Reuters expected the company to report profit per share of $1.15 for the quarter. Analysts' estimates typically exclude special items.

Second-quarter revenue was $21.6 billion, in line with prior year. Analysts expected revenue of $20.94 billion, for the quarter. Non-interest expense decreased 1% from last year.

Wells Fargo expects to increase its third quarter stock dividend to $0.51 per share from $0.45 per share. Under the 2019 Capital Plan submission, the company projects up to $23.1 billion of gross common stock repurchases, for the four-quarter period from third quarter 2019 through second quarter 2020.

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