Wells Fargo (WFC) earnings Q2 2020: $2.four billion loss
Michael Nagle | Bloomberg | Getty Photographs
Wells Fargo on Tuesday posted its first quarterly loss because the Nice Recession because the financial institution put aside $8.four billion in mortgage loss reserves tied to the coronavirus pandemic.
The financial institution had a web lack of $2.four billion within the second quarter, or a lack of 66 cents a share, worse than the 20 cents a share loss anticipated by analysts surveyed by Refinitiv. Income of $17.Eight billion was additionally weaker than analysts’ $18.four billion estimate.
Shares of the San Francisco-based financial institution tumbled 6% in premarket buying and selling.
“We’re extraordinarily disenchanted in each our second quarter outcomes and our intent to cut back our dividend,” CEO Charlie Scharf mentioned within the launch. “Our view of the size and severity of the financial downturn has deteriorated significantly from the assumptions used final quarter, which drove the $8.four billion addition to our credit score loss reserve within the second quarter.”
Wells Fargo, the embattled banking large, was extensively anticipated to put up a…