To The Moon

Top 10 US bank $Wells Fargo(WFC)$ reported its Q1 2023 quarterly earnings on Fri, 14 Apr 2023. Not a moment too soon as I have posted about Wells Fargo on 2 separate occasions. Wells Fargo Q4 2022 quarterly earnings ! 13 Apr 2023 post on which of the 3 Banks will report best earnings ! Just the right time to do a wrap up and not a moment too soon. Let’s See If Its Q1 2023 earnings is “better” than its Q4 2022 and Its performance ranking in my April posting is accurate. LOL ! Latest revenue was $20.7 Billion versus $19.7 Billion (Q4 2022); that’s a +5.08% gain. Net income was $4.9 Billion versus $2.9 Billion (Q4 2022); that’s a +68.97% gain. Earning per share was $1.23 versus $0.67 (Q4 2022); that’s a +83.58% gain. Book value per share was $43.02 vs $41.89; again a +2.7% gain. Detailed breakdown of $WFC's revenue source: Consumer Banking & Lending continues to contribute the lion’s share to revenue; standing at 44.1%. Compare to its Q4 2022 contribution of 46.3%, it has declined by -2.20%. Commercial Banking remains 4th largest contributor at 15.6%; up by +0.2% from 15.4% (Q4 2022) Corporate & Investment Banking remains as 2nd largest contributor at 23.1%; up by +2.9% Wealth & Investment Mgmt remains as 3rd largest contributor at 17.3%. It still decline by -0.8% when compared to its Q4 2022 contribution. Highlights : Historically, both “Corporate & Investment Banking” and “Wealth & Investment Mgmt” have been the bank’s weaker 2 of the 4 business segments. Looks like “Corporate & Investment banking” have pulled their socks up and bucked the trend. Business contributed additional +2% to company’s revenue. Unfortunately the same could not be said for business segment “Wealth & Investment Mgmt”. dipping by -0.8%. It remains the weakest of 4 main business segments. Wells Fargo loans extension has dipped by -0.84%. Its deposits has also seen a net outflow of -1.59% to $1,362 Billion. While long term debt remains more or less status quo. Here’s What I Think About Wells Fargo : In the movie “Cabaret” there was a song sung by Liza Minnelli - “Money Makes The World Go Round”. I like to think that this pretty much sums up the importance of having money and how this “commodity” is closely linked to banks; that has become so integrated in any economies. For Wells Fargo, I think it is worth monitoring and when the price is “right”, take a bite. It has a strong franchise, a loyal customer base, and a solid capital position. With its focus on improving its efficiency and risk management, that should help it to ensure past regulatory issues do not happen again. Its participation to support the recent US financial system during the March events that impacted the banking industry surely accounts for something Its size and range of services offer many benefits to its customers and shareholders. Wells Fargo closing price on 21 Apr 2023 Do you think Wells Fargo deserves a look and possible investment ? Do you think there will be a “better” entry price for all banks stocks in the coming months ? Please give a “LIKe” for this post ok. Thanks. Your rating is very important ! Please feel free to share or repost. Tks ! Lastly, would you consider “Follow me” so that you get first hand read of my daily new posts ? Tks ! @TigerEvents @Tiger_SG @TigerPM @TigerStars @Daily_Discussion