Wells Fargo on Thursday reported earnings for the first quarter of 2022, which ended March 31, 2022. While the company reported earnings that were down compared to the first quarter of last year, the company remains optimistic over time.
According to Wells Fargo CEO Charlie Scharf, the company is focused on a number of goals for 2022, including building a better risk and control infrastructure, addressing regulatory concerns and providing customers with intuitive and convenient digital products .
“We are moving forward … and continue to recognize that our road ahead will be bumpy, but remain confident in our ability to close the remaining gap in the years ahead,” Schaff said in the release.
According to Scharf, the company added 500,000 new mobile active users in the first quarter of 2022. The company plans to continue investing in digital products like Cell, with a focus on providing a seamless experience for customers to move money digitally.
“Providing a simple, easy-to-use and fast digital experience for our customers is one of our top strategic priorities,” Scharf said on the company’s conference call. “In the first quarter, we started rolling out the new mobile banking experience to customers in consumer stores and the feedback has been very positive.”
He added: “Digital adoption, which is critical to delivering the seamless digital experience customers expect and lowering the cost of service, continues to grow, with mobile active customers growing 4% year over year. Already up.”
In addition, the company will support financial well-being by opening HOPE Inside centers in its branches to provide financial education and advice to customers. Wells Fargo will continue to cut overdraft fees in 2022.
The company reported earnings of $3.67 billion on revenue of $17.6 billion and EPS of $0.88. Reported revenue was 21% lower than a year earlier. The decline was due to lower mortgage banking revenue, investment trading activity and lower investment banking fees, the company said in a press release.
Credit card revenue rose 6% year over year due to higher balances and higher sales. According to Wells Fargo CFO Mike Santomassimo, credit card point-of-sale purchases rose 33% over the same period, and new credit card accounts rose 80%.
In addition, Santomasimo said over-the-counter transactions are down 45% from pre-pandemic levels. The company has reduced the number of branches by 12% as customers continue to look for digital channels to do their banking.
“Wells Fargo has the ability to support our clients in a slowing economy. While we may see loan losses rise from historic lows, we should be a net beneficiary as we will benefit from higher interest rates and we We have a strong capital position and our lower expense base creates greater investment profits,” Sharp said in a press release.
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