|
Provision for credit losses were bolstered to $784 million in
the quarter, compared with a $1.4 billion release a year
earlier, when extraordinary government stimulus helped the
economy to rebound from the pandemic hit.
Banks are building up rainy day funds again amid worries that
aggressive interest-rate increases by the Federal Reserve to
tame stubbornly high inflation will tip the U.S. economy into a
recession.
The outlook has been further clouded by the Russia-Ukraine war
and fading stimulus measures. Higher borrowing costs have also
shackled demand for mortgages and car loans, crimping banks'
revenues.
Wells Fargo is still working to contain the fallout from a now
six-year-old scandal over its sales practices that led to a cap
imposed by the Fed on the lender's ability to expand its balance
sheet and hefty fines.
The fourth-largest U.S. lender reported a profit of $3.53
billion, or 85 cents per share, for the quarter ended Sept. 30,
compared with $5.12 billion, or $1.17 per share, a year earlier.
(Reporting by Noor Zainab Hussain and Niket Nishant in Bengaluru;
Editing by Sriraj Kalluvila)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
