CHARLOTTE — Wells Fargo & Co.‘s second-quarter earnings suffered under the ongoing effects of the Covid-19 pandemic.
The bank reported a net loss of $2.38 billion, or 66 cents per diluted share, for the second quarter of 2020. That loss was largely due to a $8.4 billion addition to its loan-loss reserves. There was $1.2 billion in operating losses, including $765 million in accruals for customer remediation.
Revenue for the quarter came to $17.8 billion, a roughly 18% drop from the $21.6 billion reported in last year’s second quarter.
Tuesday morning’s results were worse than analysts’ expectations, which predicted, on average, a loss of 20 cents per share.
Wells Fargo also announced a third-quarter dividend cut to 10 cents per share from 51 cents per share.
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