The shares of Wells Fargo Today, shares of (NYSE) fell more than 6 percent after mixed Q1 results.

WFC reported Q1 revenue at $17.59billion, which is 5.1% less than in the year prior and well below consensus estimates of $17.77billion. It reported Q1 earnings per share of 88c. This is higher than the average 80c/share.

According to the bank, consumer banking and lending revenues were $8.56 Billion, which is 1.1% less YoY than the consensus estimate of $8.31 Billion. The expected 2.17 billion in commercial banking revenue was met by $2.33 billion.

Wells Fargo reported $3.47Billion in corporate and investment bank revenue, which was 3.7% lower than expected and below analyst expectations of $3.7B. The revenue from wealth and investment management was $3.76 Billion, an increase of 6% YoY over the analyst projections of $3.73 Billion.

“While we will likely see an increase in credit losses from historical lows, we should be a net beneficiary as we will benefit from rising rates, we have a strong capital position, and our lower expense base creates greater margins from which to invest,” said Charles W. Scharf, CEO of Wells Fargo.

Vital Knowledge analyst Adam Crisafulli commented:

“This is a modestly underwhelming report w/EPS upside driven by low-quality sources while non-interest income fell short. On the upside, NIM expanded more than anticipated and they saw solid growth in commercial loans,” Crisafulli said in a client note.

RBC analyst Gerard Cassidy saw “strong results.”

“We believe that investors will need to determine if the company’s cost-saving plans for its restructuring and the realignment of its business segments that were announced with 4Q20 results will lead it to higher profitability levels within a reasonable period of time.”

By Senad Karaahmetovic