Wells Fargo's stock rises following the announcement of quarterly profits despite a decline in performance.

Wells Fargo announced its quarterly earnings report for the third quarter on Friday, which revealed that the fourth largest lender in the United States recorded revenues of $20.37 billion in the third quarter, representing a 2% decline compared to the same period last year. Additionally, net income decreased by 11%, reaching $5.11 billion in the third quarter, down from $5.78 billion in the same period last year. The diluted earnings per share (EPS) fell to $1.42, down 4% year-on-year. The bank's net interest income, which reflects the difference between earnings on loans and deposit costs, also saw a significant decline of 11%, totaling $11.69 billion, which was below analysts' expectations of $11.87 billion. In addition to its financial results, Wells Fargo is actively working to lift the $1.95 trillion asset cap imposed by the Federal Reserve, which has constrained the bank's growth following the fake account scandal in 2016. Despite the drop in revenues and net income, Wells Fargo's CEO, Charlie Scharf, emphasized the bank's strong capital position, highlighting a 14% increase in common stock dividends and the $3.5 billion the bank spent on stock buybacks during the third quarter. This brings the total value of buybacks in the first nine months of 2024 to over $15 billion, a 60% increase from the previous year. On the trading front, following the earnings report, Wells Fargo's stock (NYSE: WFC) rose by 3.60% in pre-market trading, reaching $59.81 per share.