Wells Fargo sees bigger-than-expected drop in 2019 net interest income - EntornoInteligente
Entornointeligente.com /

FILE PHOTO: A Wells Fargo logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris Helgren/File Photo (Reuters) – Wells Fargo ( WFC.N ), the fourth-largest U.S. bank by assets, lowered its 2019 lending revenue forecast for the second time on Monday, largely due to lower interest rates.

Wells Fargo is the first major lender to provide updated net interest income guidance following the U.S. Federal Reserve’s interest rate cut in late July.

Speaking at an investor conference, Wells Fargo Chief Financial Officer John Shrewsberry said the San Francisco-based lender expects net interest income to fall 6% in 2019, compared with its earlier expectations of about a 5% drop.

“The pace of change in interest rates has accelerated,” he said.

Analysts on average were expecting the bank to post a drop of 3.8% in 2019.

On July 31, the U.S. central bank cut its key overnight lending rate to a target range of 2.00% to 2.25% due to concerns about the global economy on the back of the U.S.-China trade war and muted U.S. inflation. The Fed is widely expected to cut rates again later this month.

Wells Fargo relies heavily on interest rates to boost its revenue, since it manages rate-sensitive deposits and mortgage securities. More than half of its loan portfolio carries variable interest rates, with the majority linked to industry benchmarks which have largely fallen in recent months.

The bank said it expects net interest income in the second half to be down by about $1.8 billion from the first half. ( bit.ly/2k2RwMy )

Shares of Wells Fargo were trading about 1% higher at $47.60.

Reporting by Arun Koyyur; Editing by Paul Simao



Allanamiento a las oficinas de EntornoInteligente

Adscoins New Single


Nota de Prensa VIP

Smart Reputation