Shares of Wells Fargo fell .76% to $48.90 after the California-based financial services giant reported earnings of 92 cents a share for the third quarter on $4.6 billion in net income.
That was well below the $1.23 a share expected by analysts surveyed by FactSet and comes as incoming CEO Charles Scharf prepares to take the reins of the mega bank, which is digging out from the aftermath of a series of scandals involving past marketing and sales practices.
Wells Fargo said its earnings took a significant hit from $1.6 billion, or 35 cents a share, set aside to cover litigation costs of "previously disclosed retail sales practices matters."
Still, Wells Fargo delivered a modest revenue surprise, reporting $22 billion for the quarter, up from $21.9 billion during the same period a year ago and above the $21.1 billion of analysts polled by FactSet.
"We continued to make progress on our top priorities during the third quarter, and we're all looking forward to Charlie Scharf's joining Wells Fargo on October 21 as the company's Chief Executive Officer and President," interim CEO Allen Parker said in a press release.