Wells Fargo posts rise in Q4 profit; credit loss provisions increase

Wells Fargo posted a rise in fourth-quarter profit and revenue on Friday, but provisions for credit losses jumped.

Net income rose to $3.45bn, or 86 cents a share, from $3.16bn, or 75 cents, in the same period a year earlier. Meanwhile, revenue ticked up 2% to $20.48bn.

Wells said its provision for credit losses rose to $1.28bn from $957m in the fourth quarter a earlier. This included an increase in the allowance for credit losses driven by credit card and commercial real estate loans, partially offset by a lower allowance for auto loans, it said.

Chief executive officer Charlie Scharf said: "Although our improved 2023 results benefited from the strong economic environment and higher interest rates, our continued focus on efficiency and strong credit discipline were important contributors as well."

He added: "As we look forward, our business performance remains sensitive to interest rates and the health of the U.S. economy, but we are confident that the actions we are taking will drive stronger returns over the cycle.

"We are closely monitoring credit and while we see modest deterioration, it remains consistent with our expectations. Our capital position remains strong and returning excess capital to shareholders remains a priority."