Wells Fargo & Co. recently reported a net income of $5.9 billion for first quarter 2019, compared with $5.1 billion for first quarter 2018, and $6.1 billion for fourth quarter 2018.
Consumer loans decreased $3.7 billion from the prior quarter. In more detail, credit card loans decreased $746 million primarily due to seasonality. Automobile loans declined $156 million, as paydowns outpaced originations of $5.4 billion.
“We have more work ahead of us, and our strong leadership team is dedicated to making our company the most customer-focused, efficient, and innovative Wells Fargo ever,” said Allen Parker, interim CEO. “All these efforts are focused on creating a first-rate organization that is characterized by a strong financial foundation, a leading presence in our chosen markets, focused growth within a responsible risk management framework, operational excellence, and highly engaged team members.”
Net interest income in the first quarter was $12.3 billion, down $333 million from fourth quarter 2018, driven primarily by two fewer days in the quarter and balance sheet mix and repricing, including the impact of a flattening yield curve. The net interest margin was 2.9%, down 3 basis points from the prior quarter due to balance sheet mix and repricing.
Average loans were $950.1 billion in the first quarter, up $3.8 billion from the fourth quarter. Period-end loan balances were $948.2 billion at March 31, 2019, down $4.9 billion from Dec. 31, 2018. Commercial loans were down $1.2 billion compared with Dec. 31, 2018, predominantly due to a $1.1 billion decline in commercial and industrial loans, partially offset by $460 million of growth in commercial real estate loans.