Wells Fargo & Company (NYSE: WFC) watched its shares drop Wednesday on the release of first-quarter 2021 financial results.
Figures released Wednesday showed revenues at $18.063 billion, compared to $17.7 billion in the prior-year quarter. Net income for the quarter came in at $4.742 billion, compared to $653 million.
CEO Charlie Scharf commented, "Our results for the quarter, which included a $1.6 billion pre-tax reduction in the allowance for credit losses, reflected an improving U.S. economy, continued focus on our strategic priorities, and ongoing support for our customers and our communities. Charge-offs are at historic lows and we are making changes to improve our operations and efficiency, but low interest rates and tepid loan demand continued to be a headwind for us in the quarter.
"We are keenly focused on the priorities I outlined last quarter. Our work to build the appropriate risk and control environment remains our top priority. This is a multiyear effort and there is still much to do, but I am confident we are making progress, though it is not always a straight line. We are steadfast in our commitment to do this work which should ultimately satisfy our regulatory obligations," Scharf added.
Net interest income decreased 22%, primarily due to the impact of lower interest rates, which drove a re-pricing of the balance sheet, lower loan balances primarily due to soft demand and elevated prepayments, as well as unfavorable hedge ineffectiveness accounting results, and higher mortgage-backed securities premium amortization
WFC shares lost 45 cents, or 1.1%, to $39.31.
