Wells Fargo Earnings: Net Interest Income Guidance Disappoints, but Expenses Remain Under Control

Wide-moat-rated Wells Fargo reported fourth-quarter EPS of $0.86 per share, in line with the FactSet consensus estimate of $0.86 per share. Excluding the one-time severance charges of $969 million and FDIC special assessment of $1.9 billion for uninsured deposits of certain failed banks during the banking turmoil of early 2023, the core operating results came in at $1.29 per share. The fourth-quarter numbers, after adjusting for the FDIC charge, resulted in a return on tangible equity of 13%, still below management’s medium target of 15%.