Wells Fargo reported third-quarter 2024 net income of $5.1 billion, equal to earnings per share of $1.42, as year-on-year growth in non-interest income helped cushion an 11 per cent annual decline in net interest income. Return on equity reached 11.7 per cent and the Common Equity Tier 1 ratio stood at 11.3 per cent, according to the bank's earnings release.
Net interest income fell 2 per cent quarter on quarter, driven by higher funding costs as deposit pricing remained elevated and loan balances edged lower across both consumer and commercial portfolios. Non-interest income rose 12 per cent year on year, driven by improved venture capital results, higher asset-based fees in wealth and investment management, higher investment banking fees and higher trading gains, partly offset by losses on repositioning the securities portfolio. The efficiency ratio was 64 per cent for the quarter.
FED ASSET CAP
The Federal Reserve's consent order capping Wells Fargo's total assets at their 2017 year-end level remains in force.
Credit quality was described as stable during the quarter.
Management had not provided a public timeline for the cap's lifting.