Wells Fargo Suffers Its Worst Quarter in More Than a Decade

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Wells Fargo  (WFC) - Get Report is having a tough time navigating the coronavirus pandemic. 

The country's fourth-largest bank by assets on Tuesday posted its first quarterly loss in more than a decade, slashed its dividend by more than expected and put aside close to $10 billion in anticipation of a wave of loan defaults.

The San Francisco-based bank 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. 

The bank confirmed plans to cut its dividend to 10 cents a share from the 51 cents it paid in each of the four most-recent quarters, more than Wall Street had been expecting. 

It also said it set aside $6.03 billion for potential loan losses in its commercial banking unit and another $3.38 billion for potential losses in its consumer-bank unit in preparation for what it anticipates will be a wave of loan defaults.

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