Wells Fargo Profit Streak Seen No Match for Revenue Skid
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Wells Fargo & Co., the world’s most valuable bank, is at risk of ending a 17-quarter streak of rising per-share profits as an industrywide revenue slump overcomes one-time gains and cost cuts that buttressed earnings.
The largest U.S. home lender, which reports results this week, is struggling to replace about $1.4 billion in lost mortgage revenue as higher interest rates crimp new loans. Chief Executive Officer John Stumpf has sought to counter the drop by expanding investment banking and spurring retail brokerage sales. Those units are still too small to cover the shortfall.