Wells Fargo's Mandalorian Maneuver! Did They Just Pull Off the Impossible?!

This is the Way... to a Better Bottom Line?

I've seen tougher scrapes than the current state of the galaxy's err I mean the world's economy. Wells Fargo these moneylenders reported their quarterly earnings. Apparently they're doing better than expected. Adjusted earnings per share hit $1.39. That's 16% higher than last year. Not bad for a bank that's probably seen more paperwork than I've seen bounties. But hold your Jawa juice there were some 'special items' involved. Sounds like some Imperial accounting to me.

Net Interest Income: A Womp Rat in the Exhaust Port?

Net interest income which is basically what these guys make on lending credits took a hit. Down 6% to $11.50 billion. Seems like even banks aren't immune to the 'this is the way but it's gonna cost you' philosophy. But their non interest income the stuff they get from fees and such went up a smidge. 1% to $8.65 billion. A small victory but in this business any win is a win even if it’s just enough to buy another round of spotchka at the cantina.

Scharf's Sharp Words: A Warning from the Bridge?

CEO Charlie Scharf the guy in charge of this whole operation is blaming the uncertain economy. He's talking about trade wars and volatility. Sounds like a Krayt dragon's breakfast to me. He wants a 'timely resolution' that benefits the U.S. He's 'prepared for a slower economic environment.' Translation: buckle up because this ain't no smooth hyperspace jump.

Share Buybacks: A Shiny Distraction?

Wells Fargo bought back 44.5 million of its own shares for $3.5 billion. Seems like they're trying to prop up the stock price. A little smoke and mirrors to keep the investors happy perhaps? I've seen smugglers with less deceptive tactics.

Provisions for Credit Losses: Bracing for Impact?

They set aside $932 million as provision for credit losses. That's like putting on extra armor before heading into a firefight. It means they're expecting some folks to not pay up. In my line of work we call that 'collateral.' In theirs it's a 'write off'.

Is This Beskar Strong? Only Time Will Tell.

So Wells Fargo had a decent quarter despite the chaos. Is it sustainable? Only the Force knows. But in the meantime remember: I can bring you in warm or I can bring you in cold. And that goes for banks too. I have spoken.