Wall Street banking giant Wells Fargo reported a rise in quarterly profits this afternoon, comfortably beating expectations as it presses ahead with a major cost-cutting overhaul.
The lender posted earnings per share of $1.30 during the second quarter of 2019, rising from $0.98 per share a year ago and beating $1.15 per share Refinitiv estimates.
Loan balances hit $949.9bn, rising $1.6bn from the previous quarter as lending in real estate, credit card and automobile all climbed.
Chief Financial Officer John Shrewsberry said: “We grew period-end loans and deposits, as well as pre-tax pre-provision profit, compared with the first quarter and a year ago. Our credit quality remained solid with net charge-offs near historic lows.”
The San Francisco-based bank, which is the fourth largest in the US by assets, has been mired in recent years by a swathe of high-profile scandals.
Under current interim chief executive Allen Parker, who was thrusted into the role in March after the abrupt resignation of Tim Sloan, the firm has sought to cut costs to boost its balance sheet.
Wells Fargo is one of three megabanks posting quarterly earnings today, with Goldman Sachs and JP Morgan also reporting to the market.
Read more: JP Morgan posts 16 per cent rise in profits
Morgan Stanley, Goldman’s rival, is also set to post its quarterly performance this week.
On Monday Citigroup kicked off earnings season by beating analyst estimates for profit expectations, bolstered by gains from a listing of electronic bond trading platform Tradeweb.
Yet despite solid profit growth, weak trading revenues and squeezed lending margins casted a cloud over America’s third largest bank.