![]() ![]() When asked by an analyst about whether any near-term reversal to write the equity investments back up was in the cards, Wells Fargo CFO John Shrewsberry pointed to the economic uncertainty that has been created by the coronavirus pandemic. Norwest Venture Partners and Norwest Equity Partners representatives did not respond to requests for comment.īusiness Insider could not determine which investments were impacted by the impairments. For weeks, analysts have warned investors that banks and other financial services firms are likely to turn in dismal results this earnings season as US stocks logged the worst first quarter in years and interest rates cratered.Ī Wells Fargo spokesperson responded to a request for further comment by referring to the statements made within the bank's earnings presentation. Wells Fargo reported an 89% drop in overall profit for the first quarter as it also set aside billions to cover loan loss reserves amid the pandemic's economic devastation. Overall, hits to debt and equity securities took a $950 million toll on the bank's net income for the quarter, cutting earnings per share by 17 cents. That hit represented 17% of the carrying values of these businesses' portfolio investments that are subject to an impairment assessment, the bank said. Specifically, the firm referred to impairments on investments and activity through its own Wells Fargo Strategic Capital arm and partners Norwest Venture Partners and Norwest Equity Partners. The San Francisco-based bank said in its quarterly earnings report on Monday that it racked up $935 million in securities impairments "reflecting lower market valuations," primarily from its affiliated venture capital and private equity partnerships, as well as its wholesale business. ![]() Wells Fargo said tanking valuations for its venture capital and private equity investments took a bite out of profits in the first quarter. Overall, securities impairments took a $950 million bite out of the bank's net income for the quarter.Wells Fargo, the fourth-largest US bank by customer assets, said the investments involved were made through Norwest Venture Partners, Norwest Equity Partners, and Wells Fargo Strategic Capital.On Tuesday, Wells Fargo said it racked up $935 million in impairments during the first quarter on its own investments including venture capital and PE bets.Account icon An icon in the shape of a person's head and shoulders. ![]()
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