Wells Fargo WFC Third Quarter 2023 Results

A Wells Fargo customer uses the ATM at a branch in San Bruno, California, on August 8, 2023.

Justin Sullivan | Getty Images

Wells Fargo on Friday beat Wall Street’s expectations for third-quarter profit and revenue as the benefit from higher interest rates offset slowing lending activity.

The bank’s shares rose 3.1% following the report.

Wells Fargo reported earnings per share of $1.48 for the quarter, or $1.39 excluding individual tax benefits. It was unclear what the exact number compared to Wall Street’s expectations was, but both numbers are above the LSEG consensus EPS of $1.24. The profit is also significantly higher than the 86 cents per share in the same quarter last year.

According to LSEG, formerly known as Refinitiv, total revenue for the quarter was $20.9 billion, beating the consensus estimate of $20.1 billion. Revenue was 6.5% higher than $19.6 billion in the third quarter of 2022.

“Our year-over-year revenue growth included both higher net interest income and noninterest income as we benefited from higher interest rates and the investments we make in our businesses,” Wells CEO Charlie Scharf said in a statement.

“While the economy has continued to demonstrate resilience, we are seeing the impact of the slowing economy as loan balances decline and charge-offs continue to deteriorate slightly,” Scharf added.

Net income rose to $5.77 billion in the three months ended September 30 from $3.59 billion a year earlier, driven by an 8% increase in net interest income.

Wells Fargo said its provision for credit losses in the quarter included a $333 million increase in credit loss provisions for commercial real estate office loans and higher balances on credit card loans.

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