The first quarter of 2023 has ended and thus companies publish their earnings reports. Wells Fargo stands out so far. With revenues of $20.7 billion (up 17%) and pre-tax realized commissions of $7.1 billion (up 82%), the bank is among the winners. The bank was able to generate 32% more profits due to the development of the interest rate situation. Wells Fargo was also among the banks that lent a total of $30 billion to First Republic Bank.
On top of that, deposits at Wells Fargo fell 2%. On the other hand, net interest income increased 45% to $13.34 billion.
(Reuters via PiQSuite.com/Suite)
Chart technical
Since the beginning of 2023, the Wells Fargo share has been in a consolidation phase and at the same time, the formation of a rising triangle can be seen. This indicates uncertainty among market participants. The range between $36 and $48 could possibly be traded well, but long-term investors stay on the sidelines at this prospect and wait for a new trend to form. Initial prospects will be traders at the $50 and $33.50 levels. In the meantime, quarterly reports of other financial institutions will be published, which will give a better picture of the industry.
