Wells Fargo tops Analyst Forecast with Phony Accounts Scandal

Wells Fargo & Co (NYSE:WFC) topped analyst expectations but also states that its consumer business may be down in the past few months.

“Mortgage referrals from retail banking were down 24 percent in September from August.” Retail banking referrals accounted for about 10 percent of Wells Fargo’s mortgage originations for the year so far, the bank said.

“Customer visits with bankers, account openings and applications were down on lower referrals, marketing activity and product offerings.”

New consumer checking account openings fell 30 percent from August to September as well as 25 percent from September the year before. Applications for credit cards declined by 20 percent. Wells Fargo announced that 33.2 million consumer checking accounts and 7.8 million active consumer credit cards.Visits to branch bankers by customers have declined 10% in September as well as September the year before but noted that they “were in-line with historic performance.”

Lawsuits

Wells Fargo face a number of investigations by regulars and private lawsuits that are ongoing. “I am deeply committed to restoring the trust of all of our stakeholders, including our customers, shareholders, and community partner. We know that it will take time and a lot of hard work to earn back our reputation, but I am confident because of the incredible caliber of our team members,” CEO Tim Sloan states in the third quarter release.

John Stumpf stepped down as CEO and chairman and Tim Sloan was appointed CEO, investor confidence is still wavering.

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