Wells Fargo reports Q2 noninterest expense $14B
Second quarter 2018 included $619 million of operating losses primarily related to non-litigation expense for previously disclosed matters. Reports Q2 Average deposits of $1.3 trillion, down $29.9 billion, or 2 percent. Average loans of $944.1 billion, down $12.8 billion, or 1 percent. Return on assets of 1.10 percent, return on equity of 10.60 percent, and return on average tangible common equity of 12.62 percent. Returned $4.0 billion to shareholders through common stock dividends and net share repurchases, up 17 percent from $3.4 billion in second quarter 2017. Net interest income in the second quarter was $12.5 billion, up $303 million compared with first quarter 2018, driven predominantly by a less negative impact from hedge ineffectiveness accounting, the net benefit of rate and spread movements, and one additional day in the quarter. Net interest margin was 2.93 percent, up 9 basis points compared with first quarter 2018. The increase was driven by a reduction in the proportion of lower yielding assets, as well as a less negative impact from hedge ineffectiveness accounting and the net benefit of rate and spread movements.