JPMorgan and Citigroup earlier flew by Q1 estimates even as traditional banking results noticeably weakened. Pushing the two to beats was strength in investment banking and trading. Wells Fargo (NYSE:WFC) can't rely on that as much as its TBTF peers, and suffered a Y/Y decline in revenue and income only flat from a year earlier. Shares are now down 1.7% premarket vs. small gains for JPM and C.
The efficiency ratio deteriorated to 62.7% from 61.2% in Q4 and 58.7% a year ago.
Period-end loan balances of $958.4B down $9.2B from three months earlier, with a slowdown in new credit card openings among the factors. Also noted is a slowdown in auto lending as the bank tightened underwriting. Residential mortgage loan originations of $44B down from $72B in Q4.
Previously: Wells Fargo beats by $0.04, misses on revenue (April 13)