Wells Fargo announced second quarter earnings on Tuesday that fell below analyst expectations and revealed the coronavirus’ heavy toll on profitability. The bank had a…
Wells Fargo announced second quarter earnings on Tuesday that fell below analyst expectations and revealed the coronavirus’ heavy toll on profitability.
The bank had a net loss $2.4 billion over the three-month period, marking its first quarterly loss since 2008. Much of the slide was fueled by a record addition to its loan loss reserves. Wells Fargo increased its credit loss reserves by $8.4 billion to $9.5 billion, topping the $4.9 billion estimate from economists surveyed by Bloomberg.
The bank’s shares dived as much as 8.2% on the news before paring some losses.
Here are the key numbers:
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The bank also cut its dividend to 10 cents per share from 51 cents, below the expected cut to 20 cents.
