Wells Fargo lost USD 2.4 billion in the second quarter of 2020.
Wells Fargo lost USD 2.4 billion in the second quarter of 2020, which was the bank’s first quarterly loss since its real estate crash of 2008.
This, as Wells Fargo said that the bank set aside its additional USD 8.4 billion for loan loss provisions — the money that was set aside in order to cover “potentially bad loans” — more than double Q1’s USD 3.83 billion as the effects of the pandemic devastated almost every aspect of the bank’s business.
Wells also said that the bank had a loss of 66 cents for every share. Although analysts expected a decrease of 16 cents for every share as surveyed by FactSet.
Wells Fargo said that the bank had a revenue of USD 17.84 billion in the quarter in its first full reporting period under COVID-19 restrictions, which was down from USD 21.58 billion for the same period last year.
The results failed to attain Wall Street expectations of USD 18.4 billion, which was lower than usual because of the pandemic.
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Moreover, the bank said it will decrease its common stock dividend for the third quarter of this year to 10 cents for every share from previous 51 cents for every share.
Charlie Scharf, the Chief Executive Officer of Wells Fargo, said that the bank’s view of the length and severity of its economic downturn had considerably deteriorated from its assumptions used from Q2 of 2020.
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