Source: Zero Hedge
Wells Reports Dismal Q4 Earnings: Huge Earnings Miss, NIM Tumbles As Expenses Soar If JPMorgan was the posted child for how one should frontrun the Fed’s QE4 (which JPMorgan triggered thanks to the repo market crisis it itself created by pulling liquidity from the market and investing it in risk assets) and report blowout Q4 earnings, Wells Fargo was the polar opposite. Warren Buffett’s favorite bank reported revenue and EPS which both missed estimates, with Q4 revenue sliding 5.1% to $19.9BN , below the $20.1BN estimate, while Net income of $2.9 billion and diluted EPS of $0.60 (which included the impact of $1.5 billion, or $(0.33) per share, of litigation accruals) also missed estimates of $1.10, even with the one-time adjustment. There were several other adjustments including i) $362 million gain from the sale of our Eastdil Secured (Eastdil) business; ii) $166 million of expenses related to the strategic reassessment of technology projects in Wealth and Investment Management (WIM); iii) $153 million linked quarter decrease in low-income housing tax credit (LIHTC) investment income; iv) $134 million gain on loan sales predominantly junior lien mortgage loans.
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