“The investments we are making across the franchise contributed to higher revenue versus the fourth quarter as an increase in noninterest income more than offset an expected decline in net interest income,” it was explained.
Meanwhile, noninterest expenses went up 5% from a year ago due to a mix of higher operational losses, including customer remediation for past issues, increased FDIC assessments, and higher compensation costs linked to revenue in Wealth and Investment Management.
Wells Fargo’s credit quality was relatively consistent, according to Wells Fargo chief Charlie Scharf.
“Net charge-offs were stable from the fourth quarter as credit trends remained consistent with recent performance,” said Scharf.
He noted declines in net loan charge-offs for commercial real estate and auto loans, partially offset by a higher allowance for credit card loans. The bank also reduced its allowance for credit losses in the CRE segment in the first quarter.
Source: mpamag.com