The Strategist

Wells Fargo's net profit jumps more than sevenfold

04/15/2021 - 03:47

Net profit of Wells Fargo & Co, one of the largest US banking groups, jumped 7.3 times year-on-year to $4.742 billion in the first quarter of 2021, according to the bank's financial statements.

Tony Webster
Tony Webster
The group's diluted earnings per share were $1.05 compared to $0.01 a year earlier. The bank's January-March revenues rose 1.9 per cent year-on-year to $18.063 billion.

"Our results for the quarter, which included a $1.6 billion reduction in the allowance for credit losses, reflected the improving US economy,... focus on our strategic priorities and continued support for our customers," the bank's CEO Charlie Scharf said in the release.

He also noted that bad debts are at historically low levels. The bank, the CEO said, is working to improve its operations and efficiency, although low interest rates and moderate loan demand have put pressure.

Wells Fargo is part of the so-called "Big Four" of US banks, along with its main competitors, Bank of America, Citigroup and JP Morgan Chase. Wells Fargo provides diversified financial and insurance services. The group has about 6,000 retail banking branches and more than 265,000 employees. The banking group is headquartered in Sioux Falls, South Dakota, USA.