Jim Cramer Says Wells Fargo Needs to Emphasize Credit Loss
Katherine Ross
Wells Fargo reported earnings Tuesday, April 14.
Wells Fargo (WFC) reported net income of $653 million, or 1 cent a share, for the first quarter vs. $5.9 billion, or $1.20 a share, in the comparable year-earlier quarter.
Revenue came in at $17.7 billion, down from $21.6 billion in the first quarter of 2019. Net interest income was $11.3 billion, down $999 million, while non-interest income was $6.4 billion, down $2.9 billion
According to TheStreet's M. Corey Goldman, the bank "set aside some $4 billion in loan-loss provisions in the first quarter related to the COVID-19 pandemic and corresponding economic fallout, almost five times what it allocated a year ago and the most in a decade, leading to a near-90% drop in net income."
“Wells Fargo plays an important role in the financial system and the economic strength of our country, and we take our responsibility seriously, particularly in these unprecedented times,” CEO Charlie Scharf said in a statement.
Jim Cramer weighed in on the quarter. He didn't like how the bank did not emphasize credit loss. But, on the positive side, "it doesn't sound like they're going to cut their dividend anytime soon."
JPMorgan Chase also reported earnings
Watch the full video above for more.
