Wells Fargo trimmed its staff and total costs in the third quarter, with efficiency in mind.
“We have maintained strong credit discipline and driven significant operating efficiencies in the company while investing heavily to build a risk and control infrastructure appropriate for a bank of our size,” Chief Executive Charlie Scharf said during today’s Q3 earnings call.
To boost efficiencies in Q3, the $1.7 trillion bank:
- Reduced headcount: Headcount fell 3% year over year to 220,167, according to the bank’s earnings supplement, and “has declined every quarter for four years,” Scharf said.
- Pulled back on spending: Noninterest expenses were $13 billion, down from $13.1 billion during the same period last year and down from $13.3 billion in Q2 2024, according to the earnings supplement.
- Refurbished branches: The bank is investing in branches, refurbishing over 460 during the first three quarters of this year, Scharf said.
BY THE NUMBERS: Wells Fargo reported in Q3:
- Net income fell 11% YoY to $5.1 billion;
(Courtesy/Wells Fargo)
- Efficiency ratio was 64, compared to 63 in Q3 2023;
- Active mobile users increased by 1.6 million or 5% from last year to 35.8 million;
- Net interest income fell 11% YoY to $11.7 billion;
- Total revenue fell 2% YoY to $20.4 billion; and
- Technology, telecoms and equipment spend increased 17% YoY to $1.1 billion.
NOTEWORTHY: During the quarter, the bank appointed Bridget Engle as its head of technology, Scharf said during the earnings the call.
“I have worked with Bridget in the past and know firsthand how her deep experience leading large-scale technology transformations at large global financial institutions will benefit Wells Fargo,” he said.
TRANSACTION: In Q3, Wells Fargo launched two co-branded credit cards with Expedia to offer travel rewards to clients, Scharf said.
MARKET REACTION: Shares of Wells Fargo (WFC) were up 5.6% from market open to $60.98 at market close. Wells Fargo has a market capitalization of $207.6 billion.
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