Wells Fargo on Thursday reported first-quarter earnings that topped analysts` expectation, but revenue came in light.
The third-largest U.S. bank by assets reported a slight drop in profit, due to in part higher costs and weaker mortgage banking fees.
The bank`s shares were down more than 2 percent in premarket trading following the announcement.
Here`s what the Street was expecting:
The bank earned 99 cents per share in the same period last year.
"Wells Fargo continued to make meaningful progress in the first quarter in rebuilding trust with customers and other important stakeholders, while producing solid financial results," Wells Fargo CEO Tim Sloan said in a statement.
The bank said total average loans were $963.6 billion in the quarter, down $502 million from the fourth quarter. Mortgage banking noninterest income was $1.2 billion, compared with $1.4 billion in fourth quarter 2016.
The earnings report came three days after the bank`s independent directors decided to initiate corporate pay clawbacks, following a six-month investigation into the scrutinized institution`s retail banking sales practices.
The board review indicated that former Wells Fargo Chairman and CEO John Stumpf acknowledged that he made significant mistakes and helped create a culture at the bank that resulted in abuses.
"The findings are valuable to us and beneficial in helping to identify areas for further improvement. While we have more work to do, I am pleased with all we have accomplished thus far," Sloan said in the earnings release Thursday.
On Wednesday, Warren Buffett`s Berkshire Hathaway said it is selling 9 million shares of Wells Fargo due to possible Federal Reserve regulations.
Citigroup also reported earnings on Thursday, beating expectations on the top and bottom line. Earlier in the day, JPMorgan Chase reported first-quarter earnings that easily beat Wall Street`s expectations.
— CNBC`s Wilfred Frost contributed to this report.
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