Wells Fargo has reported a net income of $6.15bn, or $1.16 per diluted common share, for fourth quarter 2017, an increase of 17% compared with $5.3bn, or $0.96 per share, in the fourth quarter 2016.
For the quarter period ended 31 December, the group’s revenue increased 2% year-on-year to $22.1bn.
The community banking unit of the group posted net income of $3.7bn, up 69% compared with $2.73bn in the year ago period. The division’s total revenue during the quarter was $12bn, up 2.9% from $11.66bn the corresponding period of 2016.
Wells Fargo’s wholesale banking posted a net income of $2.1bn, while the wealth and investment management unit reported net income of $659m for the latest quarter.
Wells Fargo CFO John Shrewsberry said: “Wells Fargo reported $6.2bn of net income in the fourth quarter, which included a net benefit from the Tax Cuts & Jobs Act and a gain on the sale of Wells Fargo Insurance Services, partially offset by litigation accruals.
“Compared with the third quarter we grew both loans and deposits, and our credit performance, liquidity and capital remained exceptionally strong. We returned a record $14.5bn to shareholders through common stock dividends and net share repurchases in 2017, up 16%, and returning more capital to shareholders remains a priority.
“We’ve made progress on our efficiency initiatives and remain committed to our target of $2bn of expense reductions by the end of 2018, which are being used to support our investments in the business, and an additional $2bn by the end of 2019. In addition, by the beginning of 2019 we expect the amortization of core deposit intangible expense ($769m in 2018) and the FDIC special assessment to be complete.”