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Wells Fargo accuses the broken market with a 6% cut in its income

Date: June 1, 2023 Time: 18:19:51

Wells Fargo accounts are weighed down by the general fall in the stock markets during 2022 The lower activity in the financial markets, which has cut its billing for commissions and fees by up to 32%, and the lower amount of new loans granted in 47% have conditioned their activity throughout the year.

The loan portfolio stood at 948,500 million dollars at the end of the fourth quarter, compared to the 875,000 million that had been granted a year earlier. These figures are only offset by the interest margin, which rises 45% for mortgages.

Added to all these factors is the increase in provisions. During 2022, Wells Fargo disarmed its reserves to face losses in the credit portfolio of 1,534 million, while in 2021, due to the economic improvement of that year, 4,155 million of its reserves were released, which positively impacted the accounts.

Now its net profit has fallen by 40%, to 12,067 million dollars. Only in the quarter of 2022, the entity’s attributable net profit was 2,585 million, 53% less, while total revenue for the quarter fell 6% compared to the same period in 2021, up to 19,660 million.

The country’s fourth largest entity by assets, and one of the most important operations in the mortgage business, recently announced its intention to significantly reduce this portfolio, for which it will abandon its role as mortgage intermediary and cut its portfolio of mortgage servicing services. . In this way, Wells Fargo will focus primarily on offering mortgages to bank customers and communities in need, especially for all minority populations.

The bank has been involved in several scandals in recent years linked to its business practices and has been penalized on several occasions for consumer abuse. The most recent occasion was last December, when they paid more than $3.7 billion in fines and refunds to customers to settle a series of allegations of alleged malpractice and abuse.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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