Why Bank Of America And Wells Fargo Stocks Are Falling Today
Portfolio Pulse from Lekha Gupta
Bank of America (BAC) and Wells Fargo (WFC) stocks are falling after the FDIC reported a significant Q1 deposit decline, the largest since 1984. Total deposits fell 2.5% Q/Q, while wholesale funding rose 14.4%. U.S. banks' net income increased 16.9% Q/Q, and net operating revenues rose 7.6% Q/Q.
May 31, 2023 | 6:12 pm
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NEGATIVE IMPACT
Bank of America's stock is falling due to the FDIC's report of a significant Q1 deposit decline. Total deposits fell 2.5% Q/Q, while wholesale funding rose 14.4%.
The FDIC's report of a significant Q1 deposit decline is a negative factor for Bank of America, as it indicates a decrease in the bank's deposit base. This can lead to lower revenues and profits, which can negatively impact the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Wells Fargo's stock is falling due to the FDIC's report of a significant Q1 deposit decline. Total deposits fell 2.5% Q/Q, while wholesale funding rose 14.4%.
The FDIC's report of a significant Q1 deposit decline is a negative factor for Wells Fargo, as it indicates a decrease in the bank's deposit base. This can lead to lower revenues and profits, which can negatively impact the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100