SAN FRANCISCO (dpa-AFX) - Wells Fargo & Company (WFC) reported net income applicable to common stock of $4.2 billion, or $0.84 per share, for third quarter 2017, compared to $5.2 billion, or $1.03 per share, a year ago. The company noted that its third-quarter EPS of $0.84 included the impact of a discrete litigation accrual of $0.20 per share for mortgage-related regulatory investigations. On average, 28 analysts polled by Thomson Reuters expected the company to report profit per share of $1.03, for the quarter. Analysts' estimates typically exclude special items.
Third-quarter revenue was $21.9 billion, down 2 percent from third quarter 2016. Analysts expected revenue of $22.39 billion, for the quarter. Net interest income was $12.5 billion, up 4 percent. Non-interest income was $9.5 billion, down 9 percent.
Third-quarter non-interest expense was $14.4 billion, up 8 percent, including $752 million higher operating losses. Third-quarter 2017 included a $1 billion discrete litigation accrual, or $0.20 per share, for mortgage-related regulatory investigations.
CFO John Shrewsberry said, 'Wells Fargo reported $4.6 billion of net income in the third quarter, which included the impact of the $1 billion, or $0.20 per share, discrete litigation accrual. We continued to see good credit performance and our liquidity and capital remained exceptionally strong. During the quarter, our first under our 2017 Capital Plan, we returned $4.0 billion to shareholders through common stock dividends and net share repurchases, up from $3.4 billion in the second quarter. We remain committed to our target of $2 billion of expense reductions by the end of 2018 which will be reinvested in the business and an additional $2 billion by the end of 2019 intended to go to the bottom line.'
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