The financial services provider reported $1.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.08 by $0.12. During Sloan's tenure, Wells Fargo discovered problems in more business lines, subjecting the bank to more than a dozen probes by US agencies and a growth ban from the Federal Reserve.
The San Francisco-based bank said Friday that it earned a profit of $5.86 billion, or $1.20 per share, up from $5.14 billion, or 96 cents a share, in the same period a year earlier. Analysts projected earnings of Dollars 1.09 per share on revenue of USD 21.01 Billion for the quarter.
Scandals erupted at Wells Fargo 2½ years ago with the revelation that employees opened millions of potentially fake accounts to meet sales goals.
It's the bank's first earnings report since Tim Sloan stepped down suddenly as CEO late last month. As such, the most pressing question on the minds of investors is, who will be Wells Fargo's next CEO?
The bank is conducting an external search for its next top executive and experts have cited a number of potential candidates from rivals including JPMorgan Chase. Wells Fargo & Co has a fifty-two week low of $43.02 and a fifty-two week high of $59.53.
The results largely stand in contrast with what Wall Street is expecting to be a weak corporate earnings season as fears of an economic slowdown have taken hold.
Shares of JPMorgan rallied 4%, while Goldman Sachs, Bank of America Merrill Lynch, and Citigroup rose almost 3%. He added, "There are plenty of good people to run it, but they are automatically going to draw the ire of a significant percentage of the Senate and the U.S. House of Representatives, and that's just not smart". The board is searching for a new leader outside the bank. But for now, the troubled bank, which still has a strong underlying business, must still deliver on performance.
Efficiency ratio, a measure of profitability, worsened to 64.4% from 63.6% in the fourth quarter of 2018. Can these trends continue on Friday?
Shrewsberry on Friday reaffirmed that Wells Fargo was on track to hit its 2019 cost target.
When asked during PNC's Q1 earnings call if he'd consider the job at troubled Wells Fargo, he responded, "I like my job here, I like our company, I like our prospects.and I will end my career here", he said. Combined with its above average dividend, share buyback program, the stock is one of several to keep an eye on in the banking sector for the net 12 to 18 months.