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Wells Fargo quarterly profit slumps 55%

Kitco News

(Reuters) - Wells Fargo & Co (WFC.N) reported a 55% fall in quarterly profit on Tuesday, as it struggled to grow in a lower interest rate environment and saw a surge in cost stemming from the regulatory fallout of a series of sales scandals.

Net income applicable to common stock fell to $2.55 billion, or 60 cents per share, in the fourth-quarter ended Dec. 31, from $5.71 billion, or $1.21 per share, a year earlier.

Analysts had expected a profit of $1.12 per share, according to Refinitiv data, but it was not immediately clear if the numbers were comparable.

The San Francisco-based lender last year appointed Charles Scharf, a one-time Jamie Dimon protégé as its new chief executive officer, to help it rebuild its reputation with customers, investors and regulators.

Wells Fargo has been operating under intense scrutiny since revealing in 2016 a sales scandal that has led to billions of dollars in fines and penalties and an unprecedented growth restriction on its balance sheet by the Federal Reserve.

Reporting by Noor Zainab Hussain in Bangalore and Imani Moise in New York; Editing by Sriraj Kalluvila

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