Wells Fargo will continue to operate under a Federal Reserve restriction on its growth through the end of this year, its CEO said on Tuesday, longer than previously estimated.
Shares of the San Francisco bank fell nearly 3 percent on Tuesday.
Earlier, Wells reported fourth quarter profit of $1.21 a share, beating expectations. But revenue of $20.98 billion for the quarter fell short of expectations and the bank reported declines in all three of its main businesses.
Profit of $6.1 billion was down from $6.2 billion recorded in the fourth quarter of 2017, and revenue was 5 percent lower than the prior fourth quarter as well. Wall Street analysts polled by Refinitiv had expected profit of $1.16 a share on revenue of $21.73 billion.
Wells Fargo is still working through its regulatory issues after the Federal Reserve reportedly rejected the bank's plan to prevent more consumer abuses. On Tuesday, CEO Tim Sloan said the bank would continue to operate under a Fed-imposed cap on asset growth through the end of this year, months longer than he previously indicated in December.
The bank is also in the midst of a cost-cutting plan, including the elimination of up to 10 percent of its employee head count. On Tuesday it said it met its 2018 expense target and was on track to meet its 2019 goal."We have made meaningful improvements to how we manage risk across the company, particularly operational and compliance risk," Sloan said in a statement Tuesday.