Wells Fargo reports $2.4 billion loss for the quarter, slashes dividend to 10 cents
The bank is hamstrung by its structure: Unlike JPMorgan Chase or Citigroup, Wells Fargo lacks a sizable Wall Street trading division, and that business has been on fire this year amid surging volatility and unprecedented Federal Reserve support.
The bank had a net loss of $2.4 billion in the second quarter, or a loss of $0.66 a share, worse than the 20 cents a share loss expected by analysts surveyed by Refinitiv.
Revenue of $17.8 billion was also weaker than analysts’ $18.4 billion estimate.
But the bank announced a new quarterly dividend of 10 cents a share, a deeper than expected reduction in its payout that may indicate the bank is being cautious about the coming year.
Wells Fargo, the embattled banking giant, was widely expected to post a loss as it had telegraphed its need to set aside billions of dollars for soured loans tied to the coronavirus pandemic