The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Wells Fargo & Co’s Tim Sloan warned investors that the firm’s net interest income (NII) would be less than analysts are predicting, and shares of the company dropped the most in more than a month.
Fourth-quarter NII will be flat compared with the previous three months, when the bank collected $12.6 billion in interest, the chief executive officer said at an investor conference hosted by Goldman Sachs Group Inc. Analysts had been forecasting a figure closer to $12.8 billion.
Wells Fargo dropped 1.7 percent to $53.32, the biggest decline since October 24.
The shares have fallen 12 percent this year, compared with the 4.9 percent decrease for the 67-company S&P 500 Financials Index.
Sloan said the bank expects an overall increase in loan balances based on higher commercial loans and customers borrowing more on their credit cards. He also affirmed that the company is on track to achieve its goal of trimming costs to a range of $53.5 billion to $54.5 billion for the year.
“What they’re pushing is what’s in their control, and that’s the expense reduction,†Charles Peabody, an analyst at Portales Partners, said in a telephone interview.