Wells Fargo beats Q2 estimates as revenue jumps to $22.6B

Wells Fargo reported Q2 earnings of $2.00 per share, beating the $1.72 consensus estimate, on revenue of $22.62B that also topped expectations.

"All operating segments delivered strong growth, driving positive operating leverage," the bank said in its earnings release Tuesday.

Revenue rose about 5% from a year earlier, with Markets revenue surging roughly 24% and Corporate and Investment Banking revenue climbing 16%. Wealth and Investment Management revenue grew 13%. Total expenses rose just 2%, with non-revenue-related expenses declining year over year, which the bank said drove positive operating leverage.

The San Francisco-based lender, which has approximately $2.3 trillion in assets, reported strength across all four operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. Net interest income rose about 5% from a year earlier, reflecting higher loan yields and balance sheet growth.

The results came as five major US banks reported earnings on the same morning. JPMorgan Chase posted record revenue across every major business, while Bank of America reported double-digit net income growth across all segments. Goldman Sachs shares rose more than 3% in premarket trading.

Shares of Wells Fargo climbed 1.5% in premarket trading after the results. The bank said it plans to raise its third-quarter common stock dividend by 11% to $0.50 per share and repurchased $3 billion of common stock during the quarter. The earnings beat points to continued strength in Wells Fargo's core banking and markets operations. Investors will watch the company's conference call at 10 a.m. Eastern time for updated guidance on net interest income and expense trends.

This article is for informational purposes only and does not constitute investment advice.