79 Wells Fargo’s first-quarter profit dropped by 7% as the cost of paying customers for deposits increased, and demand from borrowers decreased, the bank revealed on Friday. However, adjusted profit of $1.26 per share surpassed analysts’ expectations of $1.11, supported by revenue growth in corporate and investment banking, which rose by nearly 5%. Despite this, shares declined by 1.6% in early trading. The bank’s interest income was impacted as it paid more to retain deposits from customers seeking higher yields, while loans saw a decline. Wells Fargo’s finance chief, Michael, highlighted the challenge of forecasting Net Interest Income (NII) amidst volatility and uncertainty in client behavior. The bank reiterated its projection of a 7% to 9% decrease in NII for the year. In the first quarter, Wells Fargo reduced allowances for credit losses on office loans by $76 million to $2.4 billion. Despite concerns about weakness in multi-family buildings, the bank remains confident in the overall health of its portfolio. You Might Be Interested In SEVEN to Construct $347.8 Million Entertainment Destination in Asir Japan inches toward agricultural reform J.P. Morgan Launches First FX Warrants in Asia with CNH/HKD and JPY/HKD Pairs Starbucks Introduces New Global Leadership Structure Finance Minister Sitharaman Forecasts India to Become Third-Largest Global Economy by 2027 Canada Set to Increase Cost-of-Living Requirement for International Students