Earnings Season Q1-2024 Big Banks
There were no major surprises from the three big banks, JOM, Citi, and Wells Fargo. Credit loss provisions were in line, slightly lower, so that’s a positive, but nothing consequential on earnings/revenue.
Wells Fargo (WFC) $56.50
Wells Fargo Q1 earnings topped Wall Street’s consensus and credit quality remained healthy. Its provision for credit losses came in significantly below the analyst estimate.
Guidance for Q2 remained the same – it still expects net interest income to decline 7%-9% from 2023’s $52.4B. Its 2024 guidance for noninterest expense at ~$52.6B also remained unchanged.
Q1 EPS of $1.20 vs. $0.86 in Q4 2023 and $1.23 in Q1 2023. Excluding $284M, or $0.06 per share, of additional expense for its FDIC special assessment, Q1 2024 earnings would have been $1.26 per share, topping the $1.09 average analyst estimate.
Total revenue of $20.9B, beating the $20.2B consensus, increased from $20.5B in the previous quarter and $20.7B a year ago.
Provision for credit losses was $938M, vs. the $1.34B consensus, falling from $1.28B in Q4 and $1.21B in Q1 2023.
Net interest income of $12.2B, lagging the $12.3B Visible Alpha estimate, dropped from $12.8B in the prior quarter and $13.3B a year ago.
Net loan charge-off, as a percentage of average total loans, was 0.50% vs. 0.53% in Q4 and 0.26% in Q1 2023.
Lower credit losses and provisioning are positive, there’s nothing to write home about on revenue and EPS, which remain tepid.