Wells Fargo reports a 9.0% annualised growth in Q4 net income

Wells Fargo & Co (NYSE: WFC), on January 12^th, reported a 9.0% increase in its fourth-quarter net income on the back of a 17% jump in noninterest income.

Why is Wells Fargo stock trending down?

The financial services behemoth saw its net income come in at $3.44 billion – down 40% versus the previous quarter. On a per-share basis, Wells Fargo earned 86 cents in its Q4. Charlie Scharf – its chief executive said in a press release today:

At $20.47 billion, revenue of the New York listed firm printed up 2.2% versus a year ago but down nearly 2.0% versus the third quarter. Consensus was for Wells Fargo to earn 86 cents a share on $20.30 billion in revenue.

Shares of Wells Fargo & Co are trading slightly down in premarket following the earnings print on Friday.

What else was noteworthy in WFC earnings?

Other notable figures in the earnings report include a 34% year-on-year increase in provision for credit losses to $1.28 billion. Wells Fargo noted a 1.1% decline in overall loans to $938 million while deposits edged down 2.9% to $1.34 billion. CEO Scharf also said on Friday:

The multinational bank saw annualised growth in revenue from all of its segments in the fourth quarter except for Wealth & Investment Management. Note that Wells Fargo had warned of a sizable severance expense in Q4 last month as Invezz reported here.

Wall Street currently has a consensus "overweight" rating on $WFC.