Why Shares of Wells Fargo Are Up Today
Shares of Wells Fargo (NYSE: WFC) traded nearly 7% higher as of 11:40 a.m. EDT, one day after the bank reported earnings for the third quarter of 2021. This is a big move for a large-cap bank.
Wells Fargo reported third-quarter earnings per common share of $1.17 on total revenue of $18.8 billion, and both numbers beat analysts' projections. But the results were really driven by non-recurring factors such as the release of reserves previously built up for potential loan losses that never materialized and the bank's repurchase of $5.3 billion of stock in the quarter.
Overall, investors didn't seem pleased, sending the stock down about 1.5% yesterday. Net interest income, a key driver of revenue, was up very minimally in the third quarter and average loan balances were down from the sequential quarter.
Source Fool.com
