Wells Fargo Shares Fall Most in Six Months After Profit Miss (1)

Wells Fargo & Co. missed analysts’ profit estimates as severance costs drove up expenses. Shares of the company fell by the most in six months.

The bank spent $612 million on severance as part of a plan designed to cut costs. Expenses were $13.7 billion, compared with the $13.6 billion predicted by analysts in a Bloomberg survey, according to a statement Wednesday.

“We have built a strong foundation and have made great progress in improving growth and returns, though we have operated with significant constraints,” Chief Executive Officer Charlie Scharf said in the statement, referring to an asset cap imposed ...