Wells Fargo hit by legal charges, mortgage banking slump

Wells Fargo hit by legal charges, mortgage banking slump

Wells Fargo & Co reported an 18.6 percent decline in quarterly profit on Friday, hurt by previously disclosed legal costs and a slump in mortgage banking income.

FILE PHOTO: A Wells Fargo branch is seen in the Chicago suburb of Evanston, Illinois, U.S. February 10, 2015. REUTERS/Jim Young/File Photo

REUTERS: Wells Fargo & Co reported an 18.6 percent decline in quarterly profit on Friday, hurt by previously disclosed legal costs and a slump in mortgage banking income.

Net income fell to US$4.60 billion, or 84 cents per share for the quarter ended Sept. 30, from US$5.64 billion, or US$1.03 per share, in the same quarter of 2016.

The results included US$1 billion in previously disclosed legal costs, but it was not clear whether that figure factored into Wall Street estimates.

Revenue fell to US$21.9 billion from US$22.3 billion a year earlier. Mortgage banking income plunged 37.3 percent.

Analysts had forecast net income of US$5.16 billion on revenue of US$22.4 billion, according to Thomson Reuters data from earlier this week.

(Reporting by Sweta Singh in Bengaluru and Dan Freed in New York; Editing by Bernard Orr)

Source: Reuters

Bookmark