Wells Fargo's second quarter 2024 financial report reveals a net income of $4.9 billion, or $1.33 per diluted share, showcasing a slight decline from the previous year's net income of $4.938 billion. The total revenue for the second quarter of 2024 was $20.689 billion, up from $20.533 billion in the same period last year.
The noninterest expense for the quarter ended June 30, 2024, was $13.293 billion, compared to $12.987 billion for the same period in 2023. However, the provision for credit losses saw a significant increase, rising to $11.236 billion from $1.713 billion in the second quarter of 2023.
Looking at the balance sheet, average loans increased to $917.094 billion from $945.9 billion in the previous year. Average deposits remained relatively stable at $1.346 trillion, compared to $1.347 trillion in the second quarter of 2023.
The return on average equity (ROE) for the second quarter of 2024 was 11.5%, slightly higher than the 11.4% reported in the same period last year. The return on tangible common equity (ROTCE) remained steady at 13.7% for both 2024 and 2023.
In terms of average loans and deposits across different segments, consumer banking and lending saw a 1% decrease in average loans, while commercial banking and corporate and investment banking remained relatively stable. Wealth and investment management experienced a 1% increase in average loans. On the deposit side, consumer banking and lending, commercial banking, and wealth and investment management saw slight increases, while corporate and investment banking experienced a 2% increase.
During the second quarter of 2024, Wells Fargo repurchased 100.5 million shares, totaling $6.1 billion of common stock.
CEO Charlie Scharf highlighted the company's transformation efforts, with diluted earnings per common share growing from both the first quarter and a year ago. He emphasized the growth in fee-based revenue offsetting the expected decline in net interest income, and the strong performance in investment advisory, trading, and investment banking fees. Scharf also mentioned the company's strong capital position, prudent return of excess capital to shareholders, and plans to increase the third quarter common stock dividend by 14%.
Scharf noted the company's focus on risk and control work, strategy execution, and customer service improvement. He highlighted the launch of two new credit cards and ongoing investments in the branch network and commercial businesses.
Today the company's shares have moved 0.7% to a price of $60.16. Check out the company's full 8-K submission here.
