Wells Fargo reported Q1/17 net income of $5.46 billion on revenue of $22.0 billion, in line with $5.46 billion and $22.2 billion for the same quarter in 2016.
Lease financing average balances of $19,070 million in Q1/17 were up 26.7% from $15,047 million in Q1/16. Interest income of $235 million was up 32% from $178 million a year earlier. The Q1/17 yield of 4.94% was up from 4.74% in the same quarter in 2016.
Q1/17 period-end commercial loan balances of $505,004 million were up 3.4% from $488,205 million at the end of the same period in 2016.
Chief Risk Officer Mike Loughlin said, “First quarter credit results reflected strong performance in our commercial portfolios and consumer real estate portfolios. Improvement in the oil and gas portfolio, as well as continued improvement in residential real estate, drove a $200 million reserve release in the quarter.”
The provision for credit losses in Q1/17 of $605 million was down 44% from $1,086 million in Q1/16.
The net interest margin of 2.87% was down from 2.90% in Q1/16.
CEO Tim Sloan said, “Wells Fargo continued to make meaningful progress in the first quarter in rebuilding trust with customers and other important stakeholders, while producing solid financial results. We had taken significant actions throughout the company to date and we are committed to building a better bank as we move was more Wells Fargo forward. Earlier this week, the independent directors of Wells Fargo’s board of directors issued a report on their investigation into the company’s retail banking sales practices. The findings are valuable to us and beneficial in helping to identify areas for further improvement. While we have more work to done, I am pleases with all we have accomplished thus far. Our 273,000 team members have remained committed to helping our customers succeed financially, as reflected in improved retail customer service scores, record levels of deposits, more primary consumer checking customers, record client assets in Wealth and Investment Management, and industry leading mortgage originations.”
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