Wells Fargo Q1 net income down 1 percentStaff Writer | April 13, 2017
Wells Fargo reported a net income applicable to common stock for the first quarter 2017 declined 1 percent from last year reflecting higher costs and weaker mortgage banking revenue.
Wells Fargo Net interest income was $12.30 billion
Non-interest expense in the first quarter was $13.79 billion, compared with $13.03 billion last year.
Net interest income was $12.30 billion, up $633 million, or 5 percent from the prior year. But, total non-interest income for the quarter declined 8 percent year-over-year to $9.70 billion.
Revenue for the quarter decreased to $22.0 billion from $22.2 billion in the prior year. It reported a 23 percent decline in mortgage banking revenue.
Earlier this week, Wells Fargo released findings of independent investigation into the Company's retail banking sales practices and related matters.
The Investigation identified that cultural, structural and leadership issues as root causes of improper sales practices. The company noted that executive compensation actions exceed $180 million after board mandates additional clawbacks of $28 million from Former Chairman and CEO John stumpf and $47 million from Carrie tolstedt.
On Wednesday, Warren Buffett's Berkshire Hathaway said it cut its stake in Wells Fargo & Co. to less than 10 percent after the Federal Reserve informed the Berkshire that remaining above that threshold would limit its ability to do business with the bank.
Berkshire sold 7.13 million shares of Wells Fargo this week and plans to sell an additional 1.87 million in the near future. ■