Wells Fargo Q4 Profit Drops; Stock Down

Wells Fargo & Co. (WFC) reported that its net income applicable to common stock for fourth quarter 2019 dropped to $2.55 billion or $0.60 per share, from last year's $5.71 billion or $1.21 per share. The latest-quarter result included an impact of $1.5 billion or $0.33 per share, of litigation accruals for a variety of matters, including previously disclosed retail sales practices matter.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.12 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Revenue of $19.9 billion, down from $21.0 billion in fourth quarter 2018. Analysts expected revenue of $20.14 billion for the quarter.

Net interest income was $11.20 billion, down from $12.64 billion last year, reflecting lower interest rate environment. But Non-interest income was $8.7 billion, up $324 million from the prior year.

In Tuesday pre-market trade, WFC is trading at $50.62, down $1.49 or 2.86 percent.

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