US bank Wells Fargo on Friday reported a 50% drop in fourth-quarter profit, weighed down by more than $3 billion in costs related to an accounting scandal and increased provisions for bad debt.
Provision for credit losses was $957 million for the quarter, compared to a $452 million charge in the prior year.
The loan loss allowance for the quarter included a $397 million increase in the loan loss allowance, primarily reflecting loan growth as well as a less favorable economic environment, the bank said.
Wells Fargo is still working to contain the fallout from a six-year-old scandal over its business practices that led to hefty fines and an asset cap imposed by the Fed.
In December, the U.S. financial system’s consumer protections office handed Wells Fargo its largest-ever civil fine as part of a $3.7 billion settlement involving widespread mismanagement in auto and home finance operations. and current accounts.
In the fourth quarter, the bank recorded $3.3 billion in operating losses related to litigation, customer remediation and regulatory issues associated with the scandal.
The fourth-largest US bank reported earnings of $0.67 per share for the quarter ended Dec. 31, compared with $1.38 per share a year earlier.
Total revenue fell to $19.7 billion from $20.9 billion a year earlier.
Source: CNN Brasil
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