Wells Fargo Reports Q4 Revenue Miss

Wells Fargo (NYSE: WFC) reported its Q4 results on Friday, with EPS of $1.37 coming in above the Street estimate of $1.27. Revenue was $19.66 billion, missing the Street estimate of $19.99 billion.

Wells Fargo reported a provision for credit losses of $957 million in the quarter, compared to a release of $452 million in the same period the previous year. The bank attributed the increase to a $397 million increase in the allowance for credit losses, primarily due to loan growth and a less favorable economic environment. Despite being described as "one-offs" related to litigation, regulatory and customer remediation, the operating losses were viewed as disappointing by Thomas Hayes, chairman and managing member at Great Hill Capital. He stated that of the major banks, Wells Fargo had the weakest report and that the bank continues to underperform.