Wells Fargo net income up 59% as bank releases $1.65B in credit loss reserves
BPC Staff Oct 14, 2021 | 8:25 pm
1 min read time226 wordsAll Latest News, Banking & Finance, Insurance & Investments
Wells Fargo today posted a jump in profit in the third quarter, boosted by a release of its credit loss reserves as the recovery from the coronavirus pandemic accelerated in 2021, CNBC reported. Third-quarter net income rose to $5.1 billion, a 59% increase from $3.2 billion during the same quarter a year ago. The company reported adjusted earnings per share of $1.22, beating a consensus estimate of 99 cents per share. The quarterly results were boosted by a $1.65 billion reserve release that led to a $1.4 billion benefit after charge-offs, the bank said. Wells Fargo continued to release funds it had set aside during the pandemic to safeguard against widespread loan losses. In September Wells Fargo paid a $250 million fine for its “unsafe or unsound practices” tied to its loan modification program. “We are a different company today and the operational and cultural changes we’ve made are enabling us to execute with significantly greater discipline than we have in the past,” CEO Charlie Scharf said in a statement. “I believe we are making significant progress, and I remain confident in our ability to continue to close the remaining gaps over the next several years, though we may continue to have setbacks along the way.” Wells Fargo is Greater Des Moines’ largest nongovernment employer, with about 13,500 employees, according to the 2021 Book of Lists.