Will Mortgage Banking Aid Wells Fargo's (WFC) Q3 Earnings?
Zacks Investment Research | Oct 11, 2019 08:35AM ET
Wells Fargo (NYSE:C) is scheduled to report third-quarter 2019 earnings, before the opening bell, on Oct 15.
This San Francisco-based banking giant has been embroiled in one scandal after another for more than three years. Troubles have been mounting at Wells Fargo since the revelation of the sales scandal in 2016, which was followed by disclosure of issues in its auto insurance business, online bill-pay services, and the Wealth and Investment Management segment as well. With the ongoing review process of business practices, more wrongdoings may be reported, consequently straining the bank’s top line.
Wells Fargo’s mortgage banking revenues are likely to have improved on rise in mortgage refinance volume owing to low interest rates in the third quarter. Further, seasonal pick-up is expected to bolster revenues.
In addition, management expects mortgage originations for the quarter to have been up due to seasonality for home buying, along with some additional refinance activity, which resulted from the decrease in mortgage interest rates. Production margin will likely have increased marginally.
Here are the other factors influencing Wells Fargo’s Q3 results:
Soft Loan Growth: Per the Fed’s latest Original post
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