The bank revealed Friday that it is facing hefty regulatory penalties and will likely have to restate first-quarter earnings. Declines in loan balances and fee income and questions about upcoming stress tests are only adding to investors' worries.
Record loan originations and strong growth in wealth assets under management more than offset a double-digit increase in expenses at the San Francisco company.
The Pittsburgh company reported a 39% gain in retail banking profits amid a lot of strong first-quarter numbers, yet it still fell short of analysts' earnings expectations by a penny and wants to push for stronger loan growth.
Revenue increased 2.8% to $18.9 billion thanks to gains in equities trading and other factors, but the bank still wants to improve its efficiency ratio, which could get harder as the year goes on.
