In line with expectations, Wells Fargo’s average loan growth for the quarter declined 1%, hit by seasonally depressed mortgage origination and credit card balances. Average deposits also took a hit, though marginally, down by $2 billion or 0.5% to $1.3 trillion, driven by a decrease in commercial deposits primarily from financial institutions.
The company focuses mainly on mortgage industry where it makes a major chunk of its interest revenues. According to the Mortgage Bankers Association analysis, total mortgage origination volumes declined from $361 billion in the first quarter of 2017 to $346 billion in the first quarter of 2018. In line with the industry trend, net interest income and non-interest income trend declined 1% and 2% respectively to $12.2 billion and $9.7 billion.
Wells Fargo stock jumped as much as 2.5% in pre-market trading after the California-based finance company reported results that topped consensus estimates.