Wells Fargo Earnings: Net Interest Income Guidance Unchanged; Trading Revenue Came in Strong

Wide-moat-rated Wells Fargo reported first-quarter EPS of $1.20 per share, ahead of the FactSet consensus estimate of $1.06 per share. Trading revenue came in quite strong at $1.4 billion, which was an all-time high for the bank. Excluding the one-time FDIC special assessment of $284 million for uninsured deposits of certain failed banks during the banking turmoil of early 2023, the core operating results came in at $1.26 per share. The first-quarter numbers resulted in a return on tangible equity of 12.3%, still below management’s medium target of 15%.