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Wells Fargo & Co (WFC) Revenue Comes Up Short

By U.S. News & World Report

Wells Fargo & Co (NYSE: WFC) kicked off 2018 with a lackluster fourth quarter earnings report on Friday. In what many investors consider the perfect environment for big banks, Wells Fargo topped earnings expectations, but revenue came up a bit soft.

Wells Fargo stock initially dipped by 1.1 percent in Friday’s pre-market trading after the bank reported adjusted earnings per share of $1.16 on revenue of $22 billion. Wall Street analysts has been anticipating EPS of $1.07 on revenue of $22.3 billion.

Wells Fargo reported $12.3 billion in net interest income, down $136 million from the third quarter. The company said the decline was due to a one-time $183 million adjustment related to leveraged leases impacted by recently approved tax reform.

[See: 7 of the Best Bank Stocks to Buy for 2018.]

Net interest margin, a key metric for measuring the core banking business, was 2.84 percent, down slightly from 2.87 percent in the third quarter. Analysts were expecting net interest margin to remain flat at 2.87 percent.

Wells Fargo also reported a $3.25 billion pre-tax expense due to litigation accruals as it continues to deal with the fallout from its fraudulent account scandal back in 2016.

Wells Fargo reported a record $14.5 billion in capital returns in 2017 via dividends and share repurchases, up 16 percent from 2016.

“We’ve made progress on our efficiency initiatives and remain committed to our target of $2 billion of expense reductions by the end of 2018, which are being used to support our investments in the business, and an additional $2 billion by the end of 2019,” chief financial officer John Shrewsberry says.

Wells Fargo and J.P. Morgan Chase & Co. ( JPM), which also reported earnings on Friday morning, both initially traded lower after the banks failed to wow the market. J.P. Morgan reported EPS of $1.76 on revenue of $25.4 billion, topping analyst estimates of $1.69 and $25.1 billion, respectively.

Given the potentially bullish environment for banks in 2018, including tax cuts, economic growth, and rising interest rates, investor expectations may have simply crept a bit too high in the short term.

[See: 11 Ways to Buy Bank Stocks.]

Vertical Group analyst Dick Bove says 2018 will be such a different environment for big banks that investors should mostly ignore the final report of 2017.

“There is nothing in this report that suggests the stock should be bought,” Bove says of Wells Fargo, according to CNBC.

Wells Fargo and J.P. Morgan shares are both up more than 12 percent in the past three months.

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Wells Fargo & Co (WFC) Revenue Comes Up Short originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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