Wells Fargo Q1 revenues fall short of estimates

US banking giant Wells Fargo reported first-quarter revenues that failed to meet Wall Street expectations on Thursday and also warned that future credit losses looked set to increase.

Wells Fargo posted quarterly earnings of $0.88 per share, higher than the $0.80 expected by analysts, but said revenues had come in at $17.59bn for the period, short of the $17.8bn the Street was waiting for.

The bank's first-quarter earnings were aided by a $1.1bn decrease in allowances for credit losses.

Chief executive Charlie Scharf said: "While we will likely see an increase in credit losses from historical lows, we should be a net beneficiary as we will benefit from rising rates, we have a strong capital position, and our lower expense base creates greater margins from which to invest."

As of 1250 BST, Wells Fargo shares were down 3.28% at $46.95 per share.