Wells Fargo Third Quarter 2024 Earnings: EPS Beats Expectations

Wells Fargo & Company (NYSE: WFC) reported its third-quarter 2024 financial results on October 11, 2024, with earnings per share (EPS) of $1.52, surpassing analyst expectations of $1.28. This article delves into the key factors that contributed to Wells Fargo's EPS beat and the bank's overall performance during the quarter.


Wells Fargo's net interest income (NII) declined by 11% to $11.69 billion in the third quarter, primarily due to lower interest rates and reduced loan demand. However, the bank's provision for loan losses decreased by 12.5% to $1.07 billion, as consumer and commercial credit quality remained strong. This reduction in provisions contributed to Wells Fargo's EPS beat, as it lowered the bank's expenses.


Noninterest income and expenses also played a role in Wells Fargo's EPS performance. The bank reported a 2% decline in revenue to $20.37 billion, primarily driven by lower interest income. However, noninterest income increased by 4% to $10.68 billion, thanks to higher fees and commissions. This growth in noninterest income helped offset the decline in revenue and contributed to Wells Fargo's EPS beat.

Wells Fargo's asset cap and regulatory issues have been a challenge for the bank in recent years. However, the bank has been working diligently to address these issues and has made progress in lifting the asset cap. In September 2024, a U.S. banking regulator found that Wells Fargo's safeguards against money laundering and other illegal transactions were too lax, further restricting its ability to expand in risky businesses. Despite these challenges, Wells Fargo remains committed to addressing regulatory concerns and improving its overall performance.

In conclusion, Wells Fargo's EPS beat in the third quarter of 2024 was driven by a reduction in provisions for loan losses, growth in noninterest income, and the bank's ongoing efforts to address regulatory issues. As the bank continues to navigate the challenges posed by lower interest rates and regulatory constraints, investors should closely monitor its progress in lifting the asset cap and improving its overall financial performance.