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(Sharecast News) - US banking giant Wells Fargo said on Tuesday that profits had grown in Q2 but still opted to lower expectations for its annual interest income performance.
Wells Fargo now expects FY225 interest income to be broadly in line with FY24 levels of $47.7bn, down from its previous forecast of NII at the low end of its 1-3% guidance range.
As far as Q2 was concerned, earnings came to $5.49bn, or $1.60 per share, up from $4.91bn at the same time a year earlier, principally due to provisions for credit losses falling to $1.01bn, down from $1.24bn a year ago.
Quarterly reported net interest income was $11.71bn, just below estimates of $11.83bn, while Wells Fargo's net interest margin stood at 2.68%, short of the 2.7% expected.
Chief executive Charlie Scharf said :Our second quarter results reflect the progress we are making to consistently produce stronger financial results with net income and diluted earnings per share up from both the first quarter and a year ago."
"During the first half of this year, we repurchased over $6.0bn of common stock and as previously announced, we expect to increase our third quarter common stock dividend by 12.5%, subject to approval by the company's board of directors at its regularly scheduled meeting later this month."
As of 1320 BST, Wells Fargo shares were down 2.22% in pre-market trading at $81.58 each.
Reporting by Iain Gilbert at Sharecast.com
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