Wells Fargo Sets Aside 1.1 Billion for Potential Loan Losses
US bank Wells Fargo has set aside $1.1 billion in the first quarter of this year that may be needed to absorb losses. As a result, the result in the first months of the year was lower than expected.
In the measurement period, the bank collected 17.6 billion dollars in revenue. That is less than the 18.5 billion dollars a year earlier and also less than experts on average expected. Below the line, 3.7 billion dollars remained, compared to 4.6 billion dollars in the same period a year earlier.
In addition to the potential credit losses, Wells Fargo may benefit from higher interest rates. CEO Charlie Scharf looks to the future with confidence, helped by the strong capital position and low-cost base. This ensures higher margins and more room for investment.
Unlike other major banks on Wall Street, Wells Fargo focuses more on US consumers and retail. This means that Wells Fargo is less affected by the fluctuations in the markets and sanctions against Russia due to the war in Ukraine.