Wells Fargo cuts 2019 net interest income forecast, shares tumble


FILE PHOTO: A Wells Fargo ATM machine is shown in Los Angeles, California, U.S., October 19, 2018. REUTERS/Mike Blake/File Photo

(Reuters) – Shares of Wells Fargo & Co reversed course to trade lower on Friday after the lender cut its 2019 net interest income forecast and said it would not provide a timeline on when a Federal Reserve cap on balance sheet growth will be lifted.

The company expects net interest income for the year to be down 2 to 5 percent, compared with its prior estimate of plus or minus 2 percent.

Earlier this year, the bank said it expects to operate under the asset cap, imposed by the U.S. Federal Reserve, until the end of 2019.

The comments were made on a post-earnings conference call following the bank’s first-quarter results earlier on Friday.

Reporting By Aparajita Saxena in Bengaluru; Editing by Anil D’Silva

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