Wells Fargo (WFC) saw a surge in its stock price on Friday following the release of its earnings report. The bank reported second-quarter earnings of $1.25 per share, surpassing analysts’ consensus of $1.16 per share. Revenue for the quarter came in at $20.5 billion, beating expectations of $20.1 billion.
One of the key factors contributing to Wells Fargo’s strong performance was its net interest income, which totaled $13.2 billion. This figure exceeded Wall Street estimates of $12.8 billion. The bank has benefited from a series of interest rate hikes implemented by the Federal Reserve in response to high inflation. Higher interest rates allow Wells Fargo to increase the spread between what it pays depositors and what it charges for loans.
As a result of the positive earnings report, Wells Fargo’s stock price rose by 2.7% in premarket trading on Friday, reaching $44.88. So far this year, the stock has experienced a 5.9% increase.
In conclusion, Wells Fargo’s strong financial performance, including beating earnings and revenue expectations, as well as its net interest income exceeding estimates, has led to a significant boost in its stock price.