Wells Fargo misses on earnings in its first full quarter since its accounts scandal
Wells Fargo missed on earnings in its first full quarter since its fraudulent accounts scandal.
The bank reported earnings per share of $0.96, lower than analysts expectations of $1.00 and revenue of $21.58 billion, also missing projections of $22.45 from analysts.
The fourth quarter is the first full quarter since Wells Fargo's fraudulent accounts scandal came to light. In September, the bank settled with regulators for opening as many as two million retail checking and credit card accounts without the knowledge of customers going as far back as 2011.
Following the revelation, now former CEO John Stumpf faced two congressional hearings and eventually stepped down, replaced by long-time Wells director Tim Sloan. Additionally, the bank has faced allegations of unfair practices towards employees who tried to report the fraudulent behavior and revelations that the fake accounts practice may have started much earlier than 2011.
Wells has taken steps to correct the problem, including eliminating sales goals for its retail banking employees, refunding costs of anyone who had an account opened without their knowledge, and a press campaign to rehabilitate their image.
Despite this, Wells has seen new account openings decline significantly in the months since the scandal came to light, falling 44% year-over-year in October and 41% year-over-year in November.
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