Wells Fargo Pins Decline in Net Interest Income on Lower Rates
Wells Fargo said fourth-quarter net interest income, a key metric for banks, fell 7% to $11.8 billion in the quarter from $12.8 billion for the same period last year.
The bank said net interest income declined due to the impact of lower rates on floating rate assets and lower loan balances.
Noninterest income increased 11% to $8.5 billion from $7.7 billion, which Wells Fargo attributed to higher investment banking fees and an increase in asset-based fees in its wealth management unit on higher market valuations. The bank’s wealth management unit reported total client assets rose 10% to $2.3 trillion.