Wells Fargo Reports Quarterly Losses

Wells Fargo reported quarterly losses for the first time since the financial crisis in 2008. The COVID-19 crisis forced to write off 9.57B to cover potential loan losses.

Wells Fargo reported a loss of $ 2.4B, or 66 cents a share, in the second quarter ending June 30, compared to a profit of $ 6.2B or $ 1.30 a share in the same period last year.

Analysts had expected Wells Fargo to report a loss of 20 cents per share.

Wells Fargo also reported an operating loss of $ 1.2B, due to customer remediation accruals, indicating that the sales scandal is still hurting the bank.

“We are extremely disappointed in both our second quarter results and our intent to reduce our dividend. Our view of the length and severity of the economic downturn has deteriorated considerably from the assumptions used last quarter,” Chief Executive Officer Charlie Scharf said