Wells Fargo’s 3rd-Quarter Earnings Show Continued Strain From Sales Scandal

It was yet another difficult quarter for Wells Fargo (NYSE: WFC), which reported earnings on Friday for the three months ended September 30. The bank earned $0.84 per share in the third quarter, which was down almost 20% on a year-over-year basis.

The bank earned $4.6 billion in the third quarter, compared to $5.6 billion in the same quarter last year. The latest results include a $1 billion charge to cover anticipated legal costs stemming from pre-crisis mortgage-related regulatory investigations.

If you back the impact of the settlement out, Wells Fargo earned $1.03 per share, which was in line with analysts' expectations. Shares of the bank nevertheless fell more than 3% in intraday trading on Friday after the bank's $21.9 billion worth of revenue came up short of the $22.4 billion expected by analysts.

Source: Fool.com