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Wells Fargo Q4 Profit Tops View, But Revenues Miss

Wells Fargo & Co. (WFC) reported that its fourth-quarter net income rose to $2.99 billion or $0.64 per share from $2.87 billion or $0.60 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.60 per share for the fourth-quarter. Analysts' estimates typically exclude special items.

Provision for credit losses decreased $823 million, predominantly due to a $757 million reserve release due to the announced sale of our student loan portfolio, as well as lower net charge-offs.

Net interest income decreased 17% year-over-year to $9.28 billion, primarily due to the impact of lower interest rates, lower loan balances primarily due to weak demand and elevated prepayments, lower investment securities balances, and higher mortgage-backed securities premium amortization.

Non-interest income slightly declined to $8.65 billion from $8.66 billion last year.

Quarterly total revenues for the quarter decreased to $17.93 billion from $19.86 billion in the previous year. Analysts expected revenues of $18.13 billion for the quarter.

The company's board approved an increase in the company's authority to repurchase common stock by an additional 500 million shares, bringing the total authorized amount to 667 million common shares.

In Friday pre-market trading, WFC was trading at $33.50, down $1.26 or 3.62 percent.

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