Why did WFC's Q3 2024 earnings fall short of expectations?

Wells Fargo's (WFC) Q3 2024 earnings fell short of expectations due to several key factors:

1. **Provisions for Loan Losses**: Wells Fargo set aside a higher provision for loan losses compared to the previous quarter, amounting to $915 million. This increase was primarily driven by a deterioration in the economic forecast, which led to a higher provision for credit losses. As a result, the bank's net income for the quarter was negatively impacted, coming in below market expectations.
2. **Lower Interest Income**: The bank also faced challenges in generating interest income, which fell to $3.36 billion from $3.46 billion in the preceding quarter. This decline was attributed to a reduction in interest-earning assets, reflecting a softer net loan balance. The bank's management indicated that the decrease in interest income was a key factor contributing to the lower-than-expected earnings.

In summary, Wells Fargo's Q3 2024 earnings fell short of expectations due to higher provisions for loan losses and lower interest income. These factors combined to affect the bank's net income, leading to a performance that did not meet market expectations.