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Wells Fargo (WFC, Financials) on Friday reported a 6% year-over-year increase in first-quarter net income to $4.89 billion, but shares fell 1% as revenue and net interest income declined.
Adjusted earnings per share for the quarter ended March 31 totaled $1.33, exceeding the $1.24 consensus estimate. Revenue dropped 3% to $20.15 billion, falling short of analyst expectations of $20.75 billion.
Net interest income declined 6% to $11.50 billion, as higher funding costs and pressure on lending margins weighed on performance. Noninterest income rose slightly to $8.65 billion from $8.64 billion a year earlier, supported by stable results in investment banking and advisory services.
The bank set aside $932 million in provisions for credit losses during the quarter. This included a release in its allowance for credit losses tied to consumer lending.
Wells Fargo returned $3.5 billion to shareholders through the repurchase of 44.5 million shares during the quarter.
Chief Executive Officer Charlie Scharf said the economic environment remains uncertain, citing the Trump administrations shift in trade policy as a contributing factor. He called for a timely resolution that supports U.S. businesses.
Adjusted earnings reflected tax benefits and securities-related losses, excluding a 6-cent gain from the sale of a third-party servicing operation.
Despite the revenue miss, the company said it remains prepared for a potentially slower macroeconomic environment later in the year.
As of 4:00 p.m. Eastern Time on Friday, Wells Fargo shares were down about 1%, after briefly rising 0.13% in after-hours trading.
This article first appeared on GuruFocus.