How to qualify for bank loan w_老虎社区_美港股上老虎

2021-07-15

How to qualify for bank loan when market still under covid 19 control?

Wells Fargo Reports Another Disappointing Quarter: Interest Income Flat As Average Loans Tumble<blockquote>富国银行报告又一个令人失望的季度：平均贷款下降，利息收入持平</blockquote>

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{"i18n":{"language":"zh_CN"},"detailType":1,"isChannel":false,"data":{"magic":2,"id":147040264,"tweetId":"147040264","gmtCreate":1626322833358,"gmtModify":1631893775471,"author":{"id":3585026211789841,"idStr":"3585026211789841","authorId":3585026211789841,"authorIdStr":"3585026211789841","name":"Limpek","avatar":"https://static.tigerbbs.com/e38d5e6a0aa567606fd0fd668de77588","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":13,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"extraTitle":"","html":"<html><head></head><body>How to qualify for bank loan when market still under covid 19 control?&nbsp;</body></html>","htmlText":"<html><head></head><body>How to qualify for bank loan when market still under covid 19 control?&nbsp;</body></html>","text":"How to qualify for bank loan when market still under covid 19 control?","highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/147040264","repostId":1137262141,"repostType":4,"repost":{"id":"1137262141","kind":"news","pubTimestamp":1626320490,"share":"https://www.laohu8.com/m/news/1137262141?lang=zh_CN&edition=full","pubTime":"2021-07-15 11:41","market":"us","language":"en","title":"Wells Fargo Reports Another Disappointing Quarter: Interest Income Flat As Average Loans Tumble<blockquote>富国银行报告又一个令人失望的季度：平均贷款下降，利息收入持平</blockquote>","url":"https://stock-news.laohu8.com/highlight/detail?id=1137262141","media":"zerohedge","summary":"After the solid results from both JPM, Goldman, and BofA (which saw strong equity trading offset by ","content":"After the solid results from both JPM, Goldman, and BofA (which saw strong equity trading offset by a slump in FICC) we got the now traditional disappointment from Wells Fargo which reported Q2 earnings that were mixed at best.<blockquote>在摩根大通、高盛和美国银行取得稳健业绩（强劲的股票交易被FICC的暴跌所抵消）之后，我们对富国银行感到传统的失望，该银行报告的第二季度收益充其量也是好坏参半。</blockquote> While the bank reported Q2 total revenue of $20.270BN, up 11%, and beating estimates of $17.75BN, with EPS of $1.38 also stronger than the 0.98 expected (a number which included a $147M Gain on Sale of Student Loans, and a $79M Write-Down of Related Goodwill),&nbsp; the reality is that the same issues that have plagued Wells for years remained front and center, including slugging loan growth and depressed net interest income. And while CEO Charlie Scharf said that \"Wells Fargo benefited from the continued economic recovery, strong markets that helped drive gains in our affiliated venture capital businesses, and our progress on improving efficiency\" he cautioned again that \"the headwinds of low interest rates and tepid loan demand remained.”<blockquote>尽管该银行报告第二季度总收入为202.7亿美元，增长11%，超出预期177.5亿美元，每股收益为1.38美元，也强于预期的0.98（这一数字包括出售学生贷款带来的1.47亿美元收益，以及7900万美元的相关商誉减记），但现实情况是，多年来困扰威尔斯的同样问题仍然是首要问题，包括贷款增长放缓和净利息收入下降。尽管首席执行官查理·沙夫表示“富国银行受益于持续的经济复苏、帮助推动我们附属风险投资业务增长的强劲市场以及我们在提高效率方面取得的进展”，但他再次警告说，“低利率和不温不火的贷款需求的阻力依然存在。”</blockquote> <img src=\"https://static.tigerbbs.com/43e8458e4d8e98b8d9fdbaad26e8830b\" tg-width=\"1085\" tg-height=\"514\"><blockquote></blockquote> And, like all the other big money-center banks, a bit portion of the bottom line EPS print - and beat - came from reserve releases, $1.639 billion, or $0.30/share, to be precise.<blockquote>而且，像所有其他大型货币中心银行一样，每股收益底线的一部分来自准备金释放，准确地说是16.39亿美元，即每股0.30美元。</blockquote> <img src=\"https://static.tigerbbs.com/50925646aa4cc77750cec18374234e76\" tg-width=\"956\" tg-height=\"543\"><blockquote></blockquote> Digging a bit below the surface reveals that once again not all was well with the bank missing across all key operating metrics:<blockquote>深入挖掘一下表面就会发现，该银行在所有关键运营指标上都存在缺失，情况再次并非一切顺利：</blockquote> <ul> <li>Net Interest Income $8.80B, Est. $8.97B</li> <li>2Q Net Interest Margin 2.02%, Est. 2.05%</li> <li>Efficiency Ratio 66%, Est. 76.6%</li> <li>Loans $854.75B, Est. $855.72B</li> <li>Total Average Loans $854.7B</li> <li>Recovery of Credit Losses $1.26B, Est. Recovery $545.4M</li> <li>Wells Fargo Expect Charge-Offs Will Increase at Some Point</li> <li>Wells Fargo Continues to See Strong Trends in All Businesses</li> </ul> To be sure, the top line improvement was a welcome change for a company whose revenue have stagnated for the better part of a year...<blockquote><ul><li>预计净利息收入$8.80 B。$8.97 B</li><li>预计第二季度净息差为2.02%。2.05%</li><li>预计效率为66%。76.6%</li><li>预计贷款$854.75 B。$855.72 B</li><li>平均贷款总额$854.7 B</li><li>预计信用损失恢复$1.26 B。恢复5.454亿美元</li><li>富国银行预计冲销将在某个时候增加</li><li>富国银行继续看到所有业务的强劲趋势</li></ul>可以肯定的是，对于一家收入在一年的大部分时间里都停滞不前的公司来说，营收的改善是一个可喜的变化……</blockquote> <img src=\"https://static.tigerbbs.com/94d49ac59dbde6f346e853ae32a3ca03\" tg-width=\"555\" tg-height=\"313\">... helping lift Net Income to pre-covid levels.<blockquote>...帮助将净利润提高到新冠疫情爆发前的水平。</blockquote> <img src=\"https://static.tigerbbs.com/97094bfdcc5421c2c70ce7bf6b3f2413\" tg-width=\"586\" tg-height=\"317\">A quick note on taxes: readers may recall that last year the bank benefited form an artificially low 6.4% effective tax rate. Well, no more, and in Q2 it bounced back over 19%, with the bank saying that it “retroactively changed the accounting for certain tax-advantaged investments to better align the financial statement presentation of the economic impact of these investments with the related tax credits.”<blockquote>关于税收的快速说明：读者可能还记得，去年该银行受益于6.4%的人为低有效税率。好吧，没有了，第二季度反弹超过19%，该银行表示“追溯性地改变了某些税收优惠投资的会计处理，以更好地将这些投资的经济影响的财务报表列报与相关税收保持一致。”</blockquote> That means changing the bank’s accounting for low-income housing tax credit investments from one kind of accounting (“equity method”) to another (“the proportional amortization method.”). As Bloomberg notes, the bank also shifted the presentation of investment tax credits related to solar investments -- reclassifying investment tax credits (“from accrued expenses and other liabilities to a reduction of the carrying value of the investment balances.”). \"All that actually had an impact: Quarterly results for last year’s second and third quarters changed, because the new system “improved our efficiency ratio and generally increased our effective income tax rate from what was previously reported.\"<blockquote>这意味着将银行对低收入住房税收抵免投资的会计处理从一种会计（“权益法”）改为另一种会计（“比例摊销法”）。正如彭博社指出的那样，该银行还改变了与太阳能投资相关的投资税收抵免的列报方式——将投资税收抵免重新分类（“从应计费用和其他负债改为减少投资余额的账面价值”）。“所有这些实际上都产生了影响：去年第二和第三季度的季度业绩发生了变化，因为新系统“提高了我们的效率比率，并普遍提高了我们的有效所得税率。”</blockquote> Looking at the big picture, there were a number of asterisks here:<blockquote>从大局来看，这里有许多星号：</blockquote> First, both the top and bottom line included anet gain from equity securities of $2.7 billion, up from $533 million in 2Q20 and $392 million in 1Q21.<blockquote>首先，顶线和底线都包括一个股本证券净收益27亿美元，高于2020年第二季度的5.33亿美元和2021年第一季度的3.92亿美元。</blockquote> Second the bank's net income of $6 billion was boosted by a larger-than-expected release of loan-loss reserves. To wit, the bank noted that results included a $1.6 billion pre-tax reduction in the allowance for credit losses, and charge-offs continued to decline. Here, Scharff cautioned that even though he continues to see strong trends in all of our businesses,he expects charge-offs to increase at some point.Meanwhile, the bank's provision for credit losses decreased by $10.8 billion.<blockquote>其次，该银行60亿美元的净收入得益于高于预期的贷款损失准备金释放。也就是说，该银行指出，业绩包括信贷损失准备金税前减少16亿美元，并且冲销继续下降。在这里，沙夫警告说，尽管他继续看到我们所有业务的强劲趋势，他预计冲销将在某个时候增加。与此同时，该行的信贷损失拨备减少了108亿美元。</blockquote> <img src=\"https://static.tigerbbs.com/f4b1beac2869b8a0a0d7d459bb7abe1d\" tg-width=\"1096\" tg-height=\"516\"><blockquote></blockquote> Things were especially ugly innet interest income, which tumbled a whopping 11% to $8.8BN from $9.9BNand flat sequentially. The bank blamed the fall on lower interest, lower loan balances due to weak demand and elevated prepayments. But it’s “stable” compared with last quarter, per the release. As a result, Net Interest Margin also slumped, dropping from 2.05% to 2.02%, missing expectations and another all time low.<blockquote>事情尤其丑陋净利息收入从99亿美元大幅下降11%至88亿美元并依次平坦。该银行将下降归咎于利息下降、需求疲软导致的贷款余额下降以及预付款增加。但根据新闻稿，与上季度相比“稳定”。受此影响，净息差也大幅下滑，从2.05%降至2.02%，低于预期，再创历史新低。</blockquote> <img src=\"https://static.tigerbbs.com/e1d6dd9adfa205bcd0e623a66f3c9ad7\" tg-width=\"568\" tg-height=\"368\">Commenting on this ongoing decline in Net Interest Income, the bank blamed it on lower rateseven though rates actually jumped substantially in Q2 both sequentially and Y/Y.<blockquote>在评论净利息收入持续下降时，该银行将其归咎于较低的利率尽管第二季度的利率实际上环比和同比都大幅上升。</blockquote> <ul> <li>Net interest income decreased $1.1&nbsp;billion, or 11%, YoY reflecting the impact of lower interest rates, lower loan balances due to soft demand and elevated prepayments, as well as higher mortgage-backed securities (MBS) premium amortization,partially offset by a decline in long-term debt</li> <li>Net interest income was stable compared with 1Q21 as favorable hedge ineffectiveness accounting results, higher Paycheck Protection Program (PPP) income, and one additional day in the quarter were offset by lower loan balancesand the impact of lower interest rates</li> </ul> Taking a deep dive into Wells Fargo’s consumer banking and lending, showed total revenue of $8.7 billion was up 14% year over year, and up just a tad from the first quarter. Consumer and small business banking’s $4.7 billion was up 40% year over year “driven by higher servicing income and higher mortgage origination and sales revenue,” but was also down 7% from last quarter.<blockquote><ul><li>净利息收入同比下降11亿美元，即11%，反映出利率下降、需求疲软和预付款增加导致贷款余额下降以及抵押贷款支持证券(MBS)溢价摊销增加的影响，部分被长期债务的下降所抵消</li><li>与2021年第一季度相比，净利息收入稳定，因为有利的对冲无效会计结果、较高的薪资保护计划(PPP)收入以及本季度增加的一天被较低的贷款余额所抵消以及较低利率的影响</li></ul>深入研究富国银行的消费者银行业务和贷款业务后发现，总收入为87亿美元，同比增长14%，仅比第一季度略有增长。“在服务收入增加以及抵押贷款发放和销售收入增加的推动下”，消费者和小企业银行业务的47亿美元同比增长40%，但也较上季度下降7%。</blockquote> <img src=\"https://static.tigerbbs.com/6f0efdc5053169240e4346034a788f83\" tg-width=\"1101\" tg-height=\"531\">Why? Wells explains “Lower retail held-for-sale originations and gain-on-sale margins were partially offset by higher income related to the re-securitization of loans purchased from mortgage-backed securities.”<blockquote>为什么？威尔斯解释说：“零售持有待售发放量和出售收益利润率的下降被与从抵押贷款支持证券购买的贷款再证券化相关的收入增加部分抵消。”</blockquote> Looking at the bank's bread and butter, Bloomberg notes that average loan balances of $331.9 billion were down from $353.1 billion last quarter (and $369.6 billion a year ago), while Wells Fargo’s $835.8 billion of average deposit balances were up from last quarter’s $789.4 billion $715.1 billion a year ago, all thanks to QE (more on this in a subsequent post).<blockquote>纵观该银行的生计，彭博社指出，平均贷款余额为3,319亿美元，低于上季度的3,531亿美元（去年同期为3,696亿美元），而富国银行的平均存款余额为8,358亿美元，高于上季度的7,894亿美元。一年前的7151亿美元，这一切都要归功于量化宽松（后续文章中会有更多介绍）。</blockquote> And this was the main reason for our downbeat take on Wells' results: the bank's average loans tumbled (again) in the second quarter as consumers and businesses, buoyed by pandemic stimulus programs, refrained from more borrowing. As shown below,the average balance of the bank’s lending book dropped 12% to $854.7 billion.The result mirrored a similar decline at Bank of America Corp., which said earlier that loans and leases in its consumer-banking unit also fell 12%.<blockquote>这是我们对富国银行业绩持悲观态度的主要原因：由于消费者和企业在大流行刺激计划的提振下避免了更多借贷，该银行的平均贷款在第二季度（再次）下降。如下图所示，该银行贷款账簿平均余额下降12%，至8,547亿美元。这一结果反映了美国银行(Bank of America Corp.)的类似下降，该银行早些时候表示，其消费银行部门的贷款和租赁也下降了12%。</blockquote> <img src=\"https://static.tigerbbs.com/301df1ead2de6fad97478bb19245e9d7\" tg-width=\"1086\" tg-height=\"561\"><blockquote></blockquote> Needless to say, you can't have a broad economic growth without loan growth.<blockquote>不用说，没有贷款增长就不可能有广泛的经济增长。</blockquote> This brings up the $64K question: with Investors and analysts asking where’s loan growth, Wells still can't answer, and it certainly wasn't to be found in the bank's commercial banking business: The firm saw middle-market banking revenue fall 9% year-over-year, with the decline driven by reduced client demand and line utilization.<blockquote>这就引出了一个价值6.4万美元的问题：投资者和分析师询问贷款增长在哪里，富国银行仍然无法回答，而且在该银行的商业银行业务中肯定找不到这个问题：该公司的中间市场银行收入下降了9%同比下降，下降的原因是客户需求和线路利用率下降。</blockquote> On credit performance, net charge-offs (as a percentage of average loans) hit 0.43%, up a tiny bit from last quarter’s 0.42% -- but down from last year’s 0.6%.<blockquote>在信贷表现方面，净冲销（占平均贷款的百分比）达到0.43%，比上季度的0.42%略有上升，但低于去年的0.6%。</blockquote> While interest income missed expectations, expenses also declined, and were down $1.2 billion Y/Y to $13.3 billion, thanks to a 1% drop in personnel expense, while non-personnel expenses were down $1.1 billion, or 20%, \"due to lower operating losses, as well as lower professional and outside services expense reflecting efficiency initiatives to reduce our spend on consultants and contractors.\"<blockquote>虽然利息收入未达预期，但费用也有所下降，由于人员费用下降1%，同比下降12亿美元至133亿美元，而非人员费用下降11亿美元，即20%，“由于运营损失减少，以及专业和外部服务费用的降低，反映了我们减少顾问和承包商支出的效率举措。”</blockquote> <img src=\"https://static.tigerbbs.com/d00bbab6b1cd81dc9dddcbf3cdfd39f7\" tg-width=\"609\" tg-height=\"440\">It looks like Wells Fargo’s dealmakers weren’t as prosperous as the investment bankers over at JPMorgan and Goldman Sachs who stole the show yesterday with a flurry of deals driving the firms’ results. Wells Fargo saw investment banking revenue weaken by $37 million from the same time last year. It’s interesting because Scharf has taken steps to strengthen that division, even as he’s gone about pruning businesses deemed inefficient. Out of the six largest U.S. banks, Wells Fargo’s investment banking division is the smallest in terms of market share.<blockquote>看起来富国银行的交易撮合者并不像摩根大通和高盛的投资银行家那么繁荣，他们昨天通过一系列交易推动了两家公司的业绩，抢尽了风头。富国银行的投资银行业务收入较去年同期减少了3700万美元。这很有趣，因为沙夫已经采取措施加强该部门，尽管他一直在削减被认为效率低下的业务。在美国六大银行中，富国银行的投资银行部门的市场份额是最小的。</blockquote> Taking a quick look at the bank's modest corporate and investment banking division, which is far less material than its peers, we find that Wells bankers were not nearly as prosperous as the investment bankers over at JPMorgan and Goldman Sachs who stole the show yesterday with a flurry of deals driving the firms’ results. Wells Fargo saw investment banking revenue weaken by $37 million from the same time last year, even though Scharf has allegedly taken steps to strengthen that division, even as he’s gone about pruning businesses deemed inefficient. Out of the six largest U.S. banks, Wells Fargo’s investment banking division is the smallest in terms of market share.<blockquote>快速浏览一下该银行规模不大的企业和投资银行部门（其重要性远不如同行），我们发现富国银行的银行家远不如摩根大通和高盛的投资银行家那么繁荣，他们昨天凭借一系列交易抢尽了风头。推动公司业绩的交易。富国银行的投资银行业务收入较去年同期下降了3700万美元，尽管据称沙夫已采取措施加强该部门，尽管他一直在削减被认为效率低下的业务。在美国六大银行中，富国银行的投资银行部门的市场份额是最小的。</blockquote> <img src=\"https://static.tigerbbs.com/81990d180e134d0e7530c36ed8a22424\" tg-width=\"563\" tg-height=\"513\">Finally, in a testament to how the bank sees its own futures, headcount fell to 259,000 from 276,000 a year ago. That reduction helped to drive noninterest expenses at the bank down 8% from the same time last year. This was perhaps to be expected: Scharf has made trimming costs a priority, and the bank broke with competitors by resuming job cuts in August.<blockquote>最后，员工人数从一年前的276,000人降至259,000人，这证明了该银行对自身未来的看法。这一减少帮助该银行的非利息支出较去年同期下降了8%。这也许是意料之中的：沙夫已将削减成本作为首要任务，该银行于8月份恢复裁员，与竞争对手决裂。</blockquote> The bottom line: as Bloomberg summarizes, consumers are still keeping up with their bills and employment has been improving, allowing banks to once again release billions in reserves they’d set aside during the worst of the pandemic. That’s bolstered profits. Still, the massive stimulus the U.S. government has pumped into the economy means there’s little demand for loans, hindering revenue especially at loan-intensive banks such as Wells.<blockquote>底线：正如彭博总结的那样，消费者仍在支付账单，就业也在改善，这使得银行能够再次释放他们在疫情最严重时期留出的数十亿美元准备金。这增加了利润。尽管如此，美国政府向经济注入的大规模刺激措施意味着贷款需求很少，这阻碍了收入，尤其是富国银行等贷款密集型银行的收入。</blockquote> In immediate response, the market pushed WFC stock higher, but having time to digest the results, the stock is now again drifting lower.<blockquote>市场立即做出反应，推高WFC股价，但由于有时间消化结果，该股现在再次走低。</blockquote>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Wells Fargo Reports Another Disappointing Quarter: Interest Income Flat As Average Loans Tumble<blockquote>富国银行报告又一个令人失望的季度：平均贷款下降，利息收入持平</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWells Fargo Reports Another Disappointing Quarter: Interest Income Flat As Average Loans Tumble<blockquote>富国银行报告又一个令人失望的季度：平均贷款下降，利息收入持平</blockquote>\n</h2>\n<h4 class=\"meta\">\n\nzerohedge2021-07-15 11:41\n\n</h4>\n</header>\n<article>\nAfter the solid results from both JPM, Goldman, and BofA (which saw strong equity trading offset by a slump in FICC) we got the now traditional disappointment from Wells Fargo which reported Q2 earnings that were mixed at best.<blockquote>在摩根大通、高盛和美国银行取得稳健业绩（强劲的股票交易被FICC的暴跌所抵消）之后，我们对富国银行感到传统的失望，该银行报告的第二季度收益充其量也是好坏参半。</blockquote> While the bank reported Q2 total revenue of $20.270BN, up 11%, and beating estimates of $17.75BN, with EPS of $1.38 also stronger than the 0.98 expected (a number which included a $147M Gain on Sale of Student Loans, and a $79M Write-Down of Related Goodwill),&nbsp; the reality is that the same issues that have plagued Wells for years remained front and center, including slugging loan growth and depressed net interest income. And while CEO Charlie Scharf said that \"Wells Fargo benefited from the continued economic recovery, strong markets that helped drive gains in our affiliated venture capital businesses, and our progress on improving efficiency\" he cautioned again that \"the headwinds of low interest rates and tepid loan demand remained.”<blockquote>尽管该银行报告第二季度总收入为202.7亿美元，增长11%，超出预期177.5亿美元，每股收益为1.38美元，也强于预期的0.98（这一数字包括出售学生贷款带来的1.47亿美元收益，以及7900万美元的相关商誉减记），但现实情况是，多年来困扰威尔斯的同样问题仍然是首要问题，包括贷款增长放缓和净利息收入下降。尽管首席执行官查理·沙夫表示“富国银行受益于持续的经济复苏、帮助推动我们附属风险投资业务增长的强劲市场以及我们在提高效率方面取得的进展”，但他再次警告说，“低利率和不温不火的贷款需求的阻力依然存在。”</blockquote> <img src=\"https://static.tigerbbs.com/43e8458e4d8e98b8d9fdbaad26e8830b\" tg-width=\"1085\" tg-height=\"514\"><blockquote></blockquote> And, like all the other big money-center banks, a bit portion of the bottom line EPS print - and beat - came from reserve releases, $1.639 billion, or $0.30/share, to be precise.<blockquote>而且，像所有其他大型货币中心银行一样，每股收益底线的一部分来自准备金释放，准确地说是16.39亿美元，即每股0.30美元。</blockquote> <img src=\"https://static.tigerbbs.com/50925646aa4cc77750cec18374234e76\" tg-width=\"956\" tg-height=\"543\"><blockquote></blockquote> Digging a bit below the surface reveals that once again not all was well with the bank missing across all key operating metrics:<blockquote>深入挖掘一下表面就会发现，该银行在所有关键运营指标上都存在缺失，情况再次并非一切顺利：</blockquote> <ul> <li>Net Interest Income $8.80B, Est. $8.97B</li> <li>2Q Net Interest Margin 2.02%, Est. 2.05%</li> <li>Efficiency Ratio 66%, Est. 76.6%</li> <li>Loans $854.75B, Est. $855.72B</li> <li>Total Average Loans $854.7B</li> <li>Recovery of Credit Losses $1.26B, Est. Recovery $545.4M</li> <li>Wells Fargo Expect Charge-Offs Will Increase at Some Point</li> <li>Wells Fargo Continues to See Strong Trends in All Businesses</li> </ul> To be sure, the top line improvement was a welcome change for a company whose revenue have stagnated for the better part of a year...<blockquote><ul><li>预计净利息收入$8.80 B。$8.97 B</li><li>预计第二季度净息差为2.02%。2.05%</li><li>预计效率为66%。76.6%</li><li>预计贷款$854.75 B。$855.72 B</li><li>平均贷款总额$854.7 B</li><li>预计信用损失恢复$1.26 B。恢复5.454亿美元</li><li>富国银行预计冲销将在某个时候增加</li><li>富国银行继续看到所有业务的强劲趋势</li></ul>可以肯定的是，对于一家收入在一年的大部分时间里都停滞不前的公司来说，营收的改善是一个可喜的变化……</blockquote> <img src=\"https://static.tigerbbs.com/94d49ac59dbde6f346e853ae32a3ca03\" tg-width=\"555\" tg-height=\"313\">... helping lift Net Income to pre-covid levels.<blockquote>...帮助将净利润提高到新冠疫情爆发前的水平。</blockquote> <img src=\"https://static.tigerbbs.com/97094bfdcc5421c2c70ce7bf6b3f2413\" tg-width=\"586\" tg-height=\"317\">A quick note on taxes: readers may recall that last year the bank benefited form an artificially low 6.4% effective tax rate. Well, no more, and in Q2 it bounced back over 19%, with the bank saying that it “retroactively changed the accounting for certain tax-advantaged investments to better align the financial statement presentation of the economic impact of these investments with the related tax credits.”<blockquote>关于税收的快速说明：读者可能还记得，去年该银行受益于6.4%的人为低有效税率。好吧，没有了，第二季度反弹超过19%，该银行表示“追溯性地改变了某些税收优惠投资的会计处理，以更好地将这些投资的经济影响的财务报表列报与相关税收保持一致。”</blockquote> That means changing the bank’s accounting for low-income housing tax credit investments from one kind of accounting (“equity method”) to another (“the proportional amortization method.”). As Bloomberg notes, the bank also shifted the presentation of investment tax credits related to solar investments -- reclassifying investment tax credits (“from accrued expenses and other liabilities to a reduction of the carrying value of the investment balances.”). \"All that actually had an impact: Quarterly results for last year’s second and third quarters changed, because the new system “improved our efficiency ratio and generally increased our effective income tax rate from what was previously reported.\"<blockquote>这意味着将银行对低收入住房税收抵免投资的会计处理从一种会计（“权益法”）改为另一种会计（“比例摊销法”）。正如彭博社指出的那样，该银行还改变了与太阳能投资相关的投资税收抵免的列报方式——将投资税收抵免重新分类（“从应计费用和其他负债改为减少投资余额的账面价值”）。“所有这些实际上都产生了影响：去年第二和第三季度的季度业绩发生了变化，因为新系统“提高了我们的效率比率，并普遍提高了我们的有效所得税率。”</blockquote> Looking at the big picture, there were a number of asterisks here:<blockquote>从大局来看，这里有许多星号：</blockquote> First, both the top and bottom line included anet gain from equity securities of $2.7 billion, up from $533 million in 2Q20 and $392 million in 1Q21.<blockquote>首先，顶线和底线都包括一个股本证券净收益27亿美元，高于2020年第二季度的5.33亿美元和2021年第一季度的3.92亿美元。</blockquote> Second the bank's net income of $6 billion was boosted by a larger-than-expected release of loan-loss reserves. To wit, the bank noted that results included a $1.6 billion pre-tax reduction in the allowance for credit losses, and charge-offs continued to decline. Here, Scharff cautioned that even though he continues to see strong trends in all of our businesses,he expects charge-offs to increase at some point.Meanwhile, the bank's provision for credit losses decreased by $10.8 billion.<blockquote>其次，该银行60亿美元的净收入得益于高于预期的贷款损失准备金释放。也就是说，该银行指出，业绩包括信贷损失准备金税前减少16亿美元，并且冲销继续下降。在这里，沙夫警告说，尽管他继续看到我们所有业务的强劲趋势，他预计冲销将在某个时候增加。与此同时，该行的信贷损失拨备减少了108亿美元。</blockquote> <img src=\"https://static.tigerbbs.com/f4b1beac2869b8a0a0d7d459bb7abe1d\" tg-width=\"1096\" tg-height=\"516\"><blockquote></blockquote> Things were especially ugly innet interest income, which tumbled a whopping 11% to $8.8BN from $9.9BNand flat sequentially. The bank blamed the fall on lower interest, lower loan balances due to weak demand and elevated prepayments. But it’s “stable” compared with last quarter, per the release. As a result, Net Interest Margin also slumped, dropping from 2.05% to 2.02%, missing expectations and another all time low.<blockquote>事情尤其丑陋净利息收入从99亿美元大幅下降11%至88亿美元并依次平坦。该银行将下降归咎于利息下降、需求疲软导致的贷款余额下降以及预付款增加。但根据新闻稿，与上季度相比“稳定”。受此影响，净息差也大幅下滑，从2.05%降至2.02%，低于预期，再创历史新低。</blockquote> <img src=\"https://static.tigerbbs.com/e1d6dd9adfa205bcd0e623a66f3c9ad7\" tg-width=\"568\" tg-height=\"368\">Commenting on this ongoing decline in Net Interest Income, the bank blamed it on lower rateseven though rates actually jumped substantially in Q2 both sequentially and Y/Y.<blockquote>在评论净利息收入持续下降时，该银行将其归咎于较低的利率尽管第二季度的利率实际上环比和同比都大幅上升。</blockquote> <ul> <li>Net interest income decreased $1.1&nbsp;billion, or 11%, YoY reflecting the impact of lower interest rates, lower loan balances due to soft demand and elevated prepayments, as well as higher mortgage-backed securities (MBS) premium amortization,partially offset by a decline in long-term debt</li> <li>Net interest income was stable compared with 1Q21 as favorable hedge ineffectiveness accounting results, higher Paycheck Protection Program (PPP) income, and one additional day in the quarter were offset by lower loan balancesand the impact of lower interest rates</li> </ul> Taking a deep dive into Wells Fargo’s consumer banking and lending, showed total revenue of $8.7 billion was up 14% year over year, and up just a tad from the first quarter. Consumer and small business banking’s $4.7 billion was up 40% year over year “driven by higher servicing income and higher mortgage origination and sales revenue,” but was also down 7% from last quarter.<blockquote><ul><li>净利息收入同比下降11亿美元，即11%，反映出利率下降、需求疲软和预付款增加导致贷款余额下降以及抵押贷款支持证券(MBS)溢价摊销增加的影响，部分被长期债务的下降所抵消</li><li>与2021年第一季度相比，净利息收入稳定，因为有利的对冲无效会计结果、较高的薪资保护计划(PPP)收入以及本季度增加的一天被较低的贷款余额所抵消以及较低利率的影响</li></ul>深入研究富国银行的消费者银行业务和贷款业务后发现，总收入为87亿美元，同比增长14%，仅比第一季度略有增长。“在服务收入增加以及抵押贷款发放和销售收入增加的推动下”，消费者和小企业银行业务的47亿美元同比增长40%，但也较上季度下降7%。</blockquote> <img src=\"https://static.tigerbbs.com/6f0efdc5053169240e4346034a788f83\" tg-width=\"1101\" tg-height=\"531\">Why? Wells explains “Lower retail held-for-sale originations and gain-on-sale margins were partially offset by higher income related to the re-securitization of loans purchased from mortgage-backed securities.”<blockquote>为什么？威尔斯解释说：“零售持有待售发放量和出售收益利润率的下降被与从抵押贷款支持证券购买的贷款再证券化相关的收入增加部分抵消。”</blockquote> Looking at the bank's bread and butter, Bloomberg notes that average loan balances of $331.9 billion were down from $353.1 billion last quarter (and $369.6 billion a year ago), while Wells Fargo’s $835.8 billion of average deposit balances were up from last quarter’s $789.4 billion $715.1 billion a year ago, all thanks to QE (more on this in a subsequent post).<blockquote>纵观该银行的生计，彭博社指出，平均贷款余额为3,319亿美元，低于上季度的3,531亿美元（去年同期为3,696亿美元），而富国银行的平均存款余额为8,358亿美元，高于上季度的7,894亿美元。一年前的7151亿美元，这一切都要归功于量化宽松（后续文章中会有更多介绍）。</blockquote> And this was the main reason for our downbeat take on Wells' results: the bank's average loans tumbled (again) in the second quarter as consumers and businesses, buoyed by pandemic stimulus programs, refrained from more borrowing. As shown below,the average balance of the bank’s lending book dropped 12% to $854.7 billion.The result mirrored a similar decline at Bank of America Corp., which said earlier that loans and leases in its consumer-banking unit also fell 12%.<blockquote>这是我们对富国银行业绩持悲观态度的主要原因：由于消费者和企业在大流行刺激计划的提振下避免了更多借贷，该银行的平均贷款在第二季度（再次）下降。如下图所示，该银行贷款账簿平均余额下降12%，至8,547亿美元。这一结果反映了美国银行(Bank of America Corp.)的类似下降，该银行早些时候表示，其消费银行部门的贷款和租赁也下降了12%。</blockquote> <img src=\"https://static.tigerbbs.com/301df1ead2de6fad97478bb19245e9d7\" tg-width=\"1086\" tg-height=\"561\"><blockquote></blockquote> Needless to say, you can't have a broad economic growth without loan growth.<blockquote>不用说，没有贷款增长就不可能有广泛的经济增长。</blockquote> This brings up the $64K question: with Investors and analysts asking where’s loan growth, Wells still can't answer, and it certainly wasn't to be found in the bank's commercial banking business: The firm saw middle-market banking revenue fall 9% year-over-year, with the decline driven by reduced client demand and line utilization.<blockquote>这就引出了一个价值6.4万美元的问题：投资者和分析师询问贷款增长在哪里，富国银行仍然无法回答，而且在该银行的商业银行业务中肯定找不到这个问题：该公司的中间市场银行收入下降了9%同比下降，下降的原因是客户需求和线路利用率下降。</blockquote> On credit performance, net charge-offs (as a percentage of average loans) hit 0.43%, up a tiny bit from last quarter’s 0.42% -- but down from last year’s 0.6%.<blockquote>在信贷表现方面，净冲销（占平均贷款的百分比）达到0.43%，比上季度的0.42%略有上升，但低于去年的0.6%。</blockquote> While interest income missed expectations, expenses also declined, and were down $1.2 billion Y/Y to $13.3 billion, thanks to a 1% drop in personnel expense, while non-personnel expenses were down $1.1 billion, or 20%, \"due to lower operating losses, as well as lower professional and outside services expense reflecting efficiency initiatives to reduce our spend on consultants and contractors.\"<blockquote>虽然利息收入未达预期，但费用也有所下降，由于人员费用下降1%，同比下降12亿美元至133亿美元，而非人员费用下降11亿美元，即20%，“由于运营损失减少，以及专业和外部服务费用的降低，反映了我们减少顾问和承包商支出的效率举措。”</blockquote> <img src=\"https://static.tigerbbs.com/d00bbab6b1cd81dc9dddcbf3cdfd39f7\" tg-width=\"609\" tg-height=\"440\">It looks like Wells Fargo’s dealmakers weren’t as prosperous as the investment bankers over at JPMorgan and Goldman Sachs who stole the show yesterday with a flurry of deals driving the firms’ results. Wells Fargo saw investment banking revenue weaken by $37 million from the same time last year. It’s interesting because Scharf has taken steps to strengthen that division, even as he’s gone about pruning businesses deemed inefficient. Out of the six largest U.S. banks, Wells Fargo’s investment banking division is the smallest in terms of market share.<blockquote>看起来富国银行的交易撮合者并不像摩根大通和高盛的投资银行家那么繁荣，他们昨天通过一系列交易推动了两家公司的业绩，抢尽了风头。富国银行的投资银行业务收入较去年同期减少了3700万美元。这很有趣，因为沙夫已经采取措施加强该部门，尽管他一直在削减被认为效率低下的业务。在美国六大银行中，富国银行的投资银行部门的市场份额是最小的。</blockquote> Taking a quick look at the bank's modest corporate and investment banking division, which is far less material than its peers, we find that Wells bankers were not nearly as prosperous as the investment bankers over at JPMorgan and Goldman Sachs who stole the show yesterday with a flurry of deals driving the firms’ results. Wells Fargo saw investment banking revenue weaken by $37 million from the same time last year, even though Scharf has allegedly taken steps to strengthen that division, even as he’s gone about pruning businesses deemed inefficient. Out of the six largest U.S. banks, Wells Fargo’s investment banking division is the smallest in terms of market share.<blockquote>快速浏览一下该银行规模不大的企业和投资银行部门（其重要性远不如同行），我们发现富国银行的银行家远不如摩根大通和高盛的投资银行家那么繁荣，他们昨天凭借一系列交易抢尽了风头。推动公司业绩的交易。富国银行的投资银行业务收入较去年同期下降了3700万美元，尽管据称沙夫已采取措施加强该部门，尽管他一直在削减被认为效率低下的业务。在美国六大银行中，富国银行的投资银行部门的市场份额是最小的。</blockquote> <img src=\"https://static.tigerbbs.com/81990d180e134d0e7530c36ed8a22424\" tg-width=\"563\" tg-height=\"513\">Finally, in a testament to how the bank sees its own futures, headcount fell to 259,000 from 276,000 a year ago. That reduction helped to drive noninterest expenses at the bank down 8% from the same time last year. This was perhaps to be expected: Scharf has made trimming costs a priority, and the bank broke with competitors by resuming job cuts in August.<blockquote>最后，员工人数从一年前的276,000人降至259,000人，这证明了该银行对自身未来的看法。这一减少帮助该银行的非利息支出较去年同期下降了8%。这也许是意料之中的：沙夫已将削减成本作为首要任务，该银行于8月份恢复裁员，与竞争对手决裂。</blockquote> The bottom line: as Bloomberg summarizes, consumers are still keeping up with their bills and employment has been improving, allowing banks to once again release billions in reserves they’d set aside during the worst of the pandemic. That’s bolstered profits. Still, the massive stimulus the U.S. government has pumped into the economy means there’s little demand for loans, hindering revenue especially at loan-intensive banks such as Wells.<blockquote>底线：正如彭博总结的那样，消费者仍在支付账单，就业也在改善，这使得银行能够再次释放他们在疫情最严重时期留出的数十亿美元准备金。这增加了利润。尽管如此，美国政府向经济注入的大规模刺激措施意味着贷款需求很少，这阻碍了收入，尤其是富国银行等贷款密集型银行的收入。</blockquote> In immediate response, the market pushed WFC stock higher, but having time to digest the results, the stock is now again drifting lower.<blockquote>市场立即做出反应，推高WFC股价，但由于有时间消化结果，该股现在再次走低。</blockquote>\n<div class=\"bt-text\">\n\n\n 来源：<a href=\"https://www.zerohedge.com/markets/wells-fargo-reports-another-disappointing-quarter-interest-income-flat-average-loans-tumble\">zerohedge</a>\n为提升您的阅读体验，我们对本页面进行了排版优化\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"WFC":"富国银行"},"source_url":"https://www.zerohedge.com/markets/wells-fargo-reports-another-disappointing-quarter-interest-income-flat-average-loans-tumble","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1137262141","content_text":"After the solid results from both JPM, Goldman, and BofA (which saw strong equity trading offset by a slump in FICC) we got the now traditional disappointment from Wells Fargo which reported Q2 earnings that were mixed at best.\nWhile the bank reported Q2 total revenue of $20.270BN, up 11%, and beating estimates of $17.75BN, with EPS of $1.38 also stronger than the 0.98 expected (a number which included a $147M Gain on Sale of Student Loans, and a $79M Write-Down of Related Goodwill),  the reality is that the same issues that have plagued Wells for years remained front and center, including slugging loan growth and depressed net interest income. And while CEO Charlie Scharf said that \"Wells Fargo benefited from the continued economic recovery, strong markets that helped drive gains in our affiliated venture capital businesses, and our progress on improving efficiency\" he cautioned again that \"the headwinds of low interest rates and tepid loan demand remained.”\n\nAnd, like all the other big money-center banks, a bit portion of the bottom line EPS print - and beat - came from reserve releases, $1.639 billion, or $0.30/share, to be precise.\n\nDigging a bit below the surface reveals that once again not all was well with the bank missing across all key operating metrics:\n\nNet Interest Income $8.80B, Est. $8.97B\n2Q Net Interest Margin 2.02%, Est. 2.05%\nEfficiency Ratio 66%, Est. 76.6%\nLoans $854.75B, Est. $855.72B\nTotal Average Loans $854.7B\nRecovery of Credit Losses $1.26B, Est. Recovery $545.4M\nWells Fargo Expect Charge-Offs Will Increase at Some Point\nWells Fargo Continues to See Strong Trends in All Businesses\n\nTo be sure, the top line improvement was a welcome change for a company whose revenue have stagnated for the better part of a year...\n... helping lift Net Income to pre-covid levels.\nA quick note on taxes: readers may recall that last year the bank benefited form an artificially low 6.4% effective tax rate. Well, no more, and in Q2 it bounced back over 19%, with the bank saying that it “retroactively changed the accounting for certain tax-advantaged investments to better align the financial statement presentation of the economic impact of these investments with the related tax credits.”\nThat means changing the bank’s accounting for low-income housing tax credit investments from one kind of accounting (“equity method”) to another (“the proportional amortization method.”). As Bloomberg notes, the bank also shifted the presentation of investment tax credits related to solar investments -- reclassifying investment tax credits (“from accrued expenses and other liabilities to a reduction of the carrying value of the investment balances.”). \"All that actually had an impact: Quarterly results for last year’s second and third quarters changed, because the new system “improved our efficiency ratio and generally increased our effective income tax rate from what was previously reported.\"\nLooking at the big picture, there were a number of asterisks here:\nFirst, both the top and bottom line included anet gain from equity securities of $2.7 billion, up from $533 million in 2Q20 and $392 million in 1Q21.\nSecond the bank's net income of $6 billion was boosted by a larger-than-expected release of loan-loss reserves. To wit, the bank noted that results included a $1.6 billion pre-tax reduction in the allowance for credit losses, and charge-offs continued to decline. Here, Scharff cautioned that even though he continues to see strong trends in all of our businesses,he expects charge-offs to increase at some point.Meanwhile, the bank's provision for credit losses decreased by $10.8 billion.\n\nThings were especially ugly innet interest income, which tumbled a whopping 11% to $8.8BN from $9.9BNand flat sequentially. The bank blamed the fall on lower interest, lower loan balances due to weak demand and elevated prepayments. But it’s “stable” compared with last quarter, per the release. As a result, Net Interest Margin also slumped, dropping from 2.05% to 2.02%, missing expectations and another all time low.\nCommenting on this ongoing decline in Net Interest Income, the bank blamed it on lower rateseven though rates actually jumped substantially in Q2 both sequentially and Y/Y.\n\nNet interest income decreased $1.1 billion, or 11%, YoY reflecting the impact of lower interest rates, lower loan balances due to soft demand and elevated prepayments, as well as higher mortgage-backed securities (MBS) premium amortization,partially offset by a decline in long-term debt\nNet interest income was stable compared with 1Q21 as favorable hedge ineffectiveness accounting results, higher Paycheck Protection Program (PPP) income, and one additional day in the quarter were offset by lower loan balancesand the impact of lower interest rates\n\nTaking a deep dive into Wells Fargo’s consumer banking and lending, showed total revenue of $8.7 billion was up 14% year over year, and up just a tad from the first quarter. Consumer and small business banking’s $4.7 billion was up 40% year over year “driven by higher servicing income and higher mortgage origination and sales revenue,” but was also down 7% from last quarter.\nWhy? Wells explains “Lower retail held-for-sale originations and gain-on-sale margins were partially offset by higher income related to the re-securitization of loans purchased from mortgage-backed securities.”\nLooking at the bank's bread and butter, Bloomberg notes that average loan balances of $331.9 billion were down from $353.1 billion last quarter (and $369.6 billion a year ago), while Wells Fargo’s $835.8 billion of average deposit balances were up from last quarter’s $789.4 billion $715.1 billion a year ago, all thanks to QE (more on this in a subsequent post).\nAnd this was the main reason for our downbeat take on Wells' results: the bank's average loans tumbled (again) in the second quarter as consumers and businesses, buoyed by pandemic stimulus programs, refrained from more borrowing. As shown below,the average balance of the bank’s lending book dropped 12% to $854.7 billion.The result mirrored a similar decline at Bank of America Corp., which said earlier that loans and leases in its consumer-banking unit also fell 12%.\n\nNeedless to say, you can't have a broad economic growth without loan growth.\nThis brings up the $64K question: with Investors and analysts asking where’s loan growth, Wells still can't answer, and it certainly wasn't to be found in the bank's commercial banking business: The firm saw middle-market banking revenue fall 9% year-over-year, with the decline driven by reduced client demand and line utilization.\nOn credit performance, net charge-offs (as a percentage of average loans) hit 0.43%, up a tiny bit from last quarter’s 0.42% -- but down from last year’s 0.6%.\nWhile interest income missed expectations, expenses also declined, and were down $1.2 billion Y/Y to $13.3 billion, thanks to a 1% drop in personnel expense, while non-personnel expenses were down $1.1 billion, or 20%, \"due to lower operating losses, as well as lower professional and outside services expense reflecting efficiency initiatives to reduce our spend on consultants and contractors.\"\nIt looks like Wells Fargo’s dealmakers weren’t as prosperous as the investment bankers over at JPMorgan and Goldman Sachs who stole the show yesterday with a flurry of deals driving the firms’ results. Wells Fargo saw investment banking revenue weaken by $37 million from the same time last year. It’s interesting because Scharf has taken steps to strengthen that division, even as he’s gone about pruning businesses deemed inefficient. Out of the six largest U.S. banks, Wells Fargo’s investment banking division is the smallest in terms of market share.\nTaking a quick look at the bank's modest corporate and investment banking division, which is far less material than its peers, we find that Wells bankers were not nearly as prosperous as the investment bankers over at JPMorgan and Goldman Sachs who stole the show yesterday with a flurry of deals driving the firms’ results. Wells Fargo saw investment banking revenue weaken by $37 million from the same time last year, even though Scharf has allegedly taken steps to strengthen that division, even as he’s gone about pruning businesses deemed inefficient. Out of the six largest U.S. banks, Wells Fargo’s investment banking division is the smallest in terms of market share.\nFinally, in a testament to how the bank sees its own futures, headcount fell to 259,000 from 276,000 a year ago. That reduction helped to drive noninterest expenses at the bank down 8% from the same time last year. This was perhaps to be expected: Scharf has made trimming costs a priority, and the bank broke with competitors by resuming job cuts in August.\nThe bottom line: as Bloomberg summarizes, consumers are still keeping up with their bills and employment has been improving, allowing banks to once again release billions in reserves they’d set aside during the worst of the pandemic. That’s bolstered profits. Still, the massive stimulus the U.S. government has pumped into the economy means there’s little demand for loans, hindering revenue especially at loan-intensive banks such as Wells.\nIn immediate response, the market pushed WFC stock higher, but having time to digest the results, the stock is now again drifting lower.","news_type":1,"symbols_score_info":{"WFC":0.9}},"isVote":1,"tweetType":1,"viewCount":687,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":58,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/147040264"}