Embattled banking giant Wells Fargo & Co (NYSE:WFC) posted better-than-expected third quarter earnings results this morning, as the company continues to deal with the fallout of the biggest banking industry scandal in several years.
The San Francisco-based company reported third quarter net income of $1.03 per share, topping Wall Street analysts’ view of $1.01.
Residential mortgage loan originations rose to $70 billion in Q3, up 11% from $63 billion in the second quarter and in-line with previously-announced forecasts. Meanwhile, Q3 net interest income rose to $12 billion, helped by growth in investment securities, loans, trading assets and mortgages held-for-sale.
Total loans sat at $961.3 billion at the end of September, up $4.2 billion from the end of June.
From the press release:
President and CEO Tim Sloan said, “I am deeply committed to restoring the trust of all of our stakeholders, including our customers, shareholders, and community partners. We know that it will take time and a lot of hard work to earn back our reputation, but I am confident because of the incredible caliber of our team members. We will work tirelessly to build a stronger and better Wells Fargo for generations to come.”
Wells Fargo has struggled mightily this year amid an all-encompassing account opening scandal that led to former CEO John Stumpf stepping down earlier this week. Although the company was secretly taped saying the scandal hasn’t hurt business all that much, many municipalities have stopped doing business with the company as a result. The bank is also dealing with a class action lawsuit tied to terminating employees who engaged in nefarious practices, with those employees claiming they were simply following orders.
Wells Fargo shares rose slightly to $44.85 in premarket trading Friday. Prior to today’s report, WFC had fallen 17.68% year-to-date, versus a 4.48% gain in the benchmark S&P 500 index during the same period.