Jim Cramer: Wells Fargo Was Bad

Katherine Ross

Wells Fargo reported a net loss of $2.4 billion, or 66 cents a share, for the second quarter, vs. income of $6.2 billion, or $1.30 a share, in the comparable year-earlier quarter. Analysts polled by FactSet had been looking for a loss of 16 cents a share.

Revenue came in at $17.8 billion, down from $21.6 billion in the second quarter of 2019. Net interest income was $9.88 billion, down $2.2 billion on year, while non-interest income was $8 billion, down $1.5 billion. Average deposits rang in at $1.4 trillion, up $117.7 billion, or 9%, from a year earlier.

In the meantime, the fourth-biggest U.S. bank by assets stashed away close to $10 billion in preparation for what it anticipates will be a wave of loan defaults.

“We are extremely disappointed in both our second-quarter results and our intent to reduce our dividend," CEO Charlie Scharf said in a statement, adding that the bank's view of the length and severity of the economic downturn has "deteriorated considerably" from the assumptions used last quarter. 

Jim Cramer's one word to describe Wells Fargo's quarter? Bad. 

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