Shares of Wells Fargo & Co. WFC,
fell 2.5% in premarket trading on Friday after the bank reported fourth-quarter earnings that exceeded expectations for the first time in six quarters, but revenues fell more than forecast as lower interest rates weighed the net interest income. Net income rose to $ 2.99 billion, or 64 cents a share, from $ 2.87 billion, or 60 cents a share in the same period a year ago. The consensus of FactSet was for earnings per share of 59 cents. Total revenues fell 9.7% to $ 17.93 billion, lacking a $ 18.12 billion FactSet consensus, as all segments of the bank’s business fell. Net interest income fell 17% to $ 9.28 billion, under the FactSet consensus of $ 9.35 billion. Consumer banking income and loans fell 5% to $ 8.61 billion, as an 8% drop in consumer banking and small business revenue and a 7% drop in credit card revenue offset a 2% increase in housing loans. “Although our financial performance improved and we earned $ 3.0 billion in the fourth quarter, our results continued to be affected by the unprecedented operating environment and the work required to put our substantial legacy problems behind us.” said chief executive Charlie Scharf. The stock rose 51.4% in the last three months to Thursday, while the SPDR Financial Select ETF XLF,
advanced 26.0% and the S&P 500 SPX
gained 9.0%.