(Reuters) - Wells Fargo & Co (WFC.N) expects a decline in its net interest margin in the third quarter as low interest rates continue to squeeze the money it makes from loans, Chief Financial Officer Tim Sloan said.
The decline could be similar to that of a year ago, when the bank’s net interest margin fell from the previous quarter by 17 basis points, Sloan said at an investor conference on Tuesday. A basis point is 1/100th of a percentage point.
In the second quarter, Wells reported a net interest margin of 3.91 percent, flat with the previous quarter. Sloan attributed the estimated decline to lower variable income than in the previous quarter, the running off of higher yielding loans and securities and strong deposit inflows.
Reporting By Rick Rothacker; Editing by Gerald E. McCormick