Wells Fargo Q1 earnings top estimates

Wells Fargo posted total quarterly revenues of $18.06bn, up from $17.71bn a year earlier, and a net income of $4.74bn, a marked improvement on the $653.0m reported in the first quarter of 2020.

Diluted earnings per common share came to $1.05 each, a solid improvement on the prior year's print of $0.64 and ahead of expectations for an EPS of $0.70..

Average loans were down 8% at $353.1bn in its consumer banking and lending unit, while average deposits were up 21% at $789.4bn.

Commercial loan averages were down 19% at $183.1bn and deposits were up 8% at $208.0bn, while average corporate and investment banking loans were 5% lower at $246.1bn and average deposits of $194.5bn were down 27%.

Provisions for credit losses decreased $5.1bn due to "continued improvements in the economic environment" and lower net charge-offs.

Chief executive Charlie Scharf said: "Our results for the quarter, which included a $1.6bn pre-tax reduction in the allowance for credit losses, reflected an improving US economy, continued focus on our strategic priorities, and ongoing support for our customers and our communities.

“Our work to build the appropriate risk and control environment remains our top priority. This is a multi-year effort and there is still much to do, but I am confident we are making progress, though it is not always a straight line. We are steadfast in our commitment to do this work which should ultimately satisfy our regulatory obligations."

As of 1330 BST, Wells Fargo shares were up 0.35% in pre-market trading at $39.93 each.