Wells Fargo & Company (NYSE: WFC) shares have advanced more than 20% since the beginning of 2022 year, and the bank reported strong fourth-quarter results this Friday.
Wells Fargo has proven its stability in 2021, and CEO Charles Scharf said that the outlook for the upcoming quarters remains positive.
Momentum remains strong
Wells Fargo reported better than expected fourth-quarter results this Friday, and according to the technical analysis, shares of this bank remain in a buy zone.
Total revenue has increased by 12.8% Y/Y to $20.86 billion, while GAAP EPS for the same period was $1.38 (beats by $0.25). The bank reported a net income of $5.8 billion, compared with $5.1 billion in the third quarter of 2021 year.
Credit quality improved significantly, and it is important to say that Wells Fargo grew loans by $32.6 billion or 4% and deposits by $12.1 billion or 1% from the third quarter.
The net income for the full fiscal year reached $21.5 billion while expenses declined 7% from a year ago due to lower operating losses and progress on efficiency initiatives.
Revenue has increased by 6% on a full-year basis as the bank continues to benefit from strong gains from equity securities and gain from sales of student lending, asset management, and corporate trust businesses.
Home lending, consumer and small business banking, commercial real estate, credit card, auto, wealth, and investment management also contributed to higher revenues.
CEO Charles Scharf said that weekly debit card spending during the fourth quarter was up every week compared to both 2019 and 2020. CEO Charles Scharf added:
As the economy continues to recover, we saw increased consumer spending, higher investment banking fees, and
