Wells Fargo profit boosted by one-time tax benefit

(Reuters) - Wells Fargo & Co posted an 18 percent rise in fourth-quarter profit on Friday, driven by a one-time tax benefit related to President Donald Trump's new tax laws.

Net income applicable to shareholders rose to $5.74 billion, or $1.16 per share on GAAP basis, in the quarter ended Dec. 31, from $4.87 billion or 96 cents per share a year ago.

The most hated banks of 2017:

11 PHOTOS
The most hated banks of 2017
See Gallery
The most hated banks of 2017

Wells Fargo & Co.: 8,465 complaints

Photo credit: Reuters 

Bank of America Corp.: 8,069

Photo credit: Reuters

JPMorgan Chase & Co. (includes Chase Bank): 7,747

Photo credit: Reuters

Citigroup Inc. (includes Citibank): 6,600

Photo credit: Reuters

U.S. Bancorp (includes U.S. Bank): 2,338

Photo credit: Getty

PNC Financial Services Group Inc. (includes PNC Bank): 1,374

Photo credit: Getty

SunTrust Banks Inc.: 1,159

Photo credit: Getty

Citizens Financial Group Inc. (includes Citizens Bank): 782 

Photo credit: Getty

Fifth Third Bancorp (includes Fifth Third Bank): 698 

Photo credit: Reuters

BB&T Corp.: 680 

Photo credit: Reuters

HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

The quarter included a $3.35 billion one-time boost from writing down its deferred tax liabilities to reflect the new U.S. corporate tax rates. http://reut.rs/2ATeBng

Shares of Wells Fargo were down 1 percent at $62.32 in premarket trading.

The company, which has been struggling to cut costs in the wake of a sales practices scandal, said it expects full-year 2018 total expenses of $53.5 billion to $54.5 billion.

Analysts and investors have kept close tabs on the San Francisco-based lender's expenses, which topped 60 cents per dollar of revenue after the scandal erupted in September, 2016. The bank has struggled to improve that key efficiency metric.

It reported non-interest expenses of $16.80 billion for the fourth quarter, bringing total non-interest expenses for the year to $58.48 billion.

Analysts had estimated on average that non-interest expense would be $54.62 billion for 2017.

Overall revenue rose 2.2 percent to $22.05 billion, supported by its business lending segment.

 

(Reporting By Aparajita Saxena in Bengaluru; Editing by Bernard Orr)

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.