Wells Fargo shares tumble after net interest income falls short of estimates
What was Wells Fargo's net interest income in Q2?
Wells Fargo's net interest income in Q2 was $11.92 billion, marking a 9% year-over-year decline. This fell below the $12.12 billion expected by analysts and was attributed to the impact of higher interest rates on funding costs.
How did Q2 net interest income compare to expectations?
Wells Fargo's Q2 net interest income was $11.92 billion, marking a 9% year-over-year decline and falling below the $12.12 billion expected by analysts. The bank attributed the drop to the impact of higher interest rates on funding costs.
What caused the decline in Wells Fargo's net interest income?
Wells Fargo's net interest income declined by 9% due to the impact of higher interest rates on funding costs, including the impact of lower deposit balances and customer migration to higher yielding deposit products. This decline was seen in both Consumer Banking and Lending and Wealth and Investment Management segments, as well as in Commercial Banking and Corporate and Investment Banking.