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Wells Fargo Q3 Profit up 13% as Provisions for Bad Loans Fall Sharply

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Wells Fargo & Co. (NYSE: WFC) said on Friday that fiscal third quarter net income rose 13% as provisions for bad loans dropped, offsetting fall in revenue.

For the latest period, the U.S.’s biggest lender posted a net income of $5.317 billion or 99 cents a share compared to a profit of $4.717 billion or 88 cents a share, in the same quarter of last year.

Analysts polled by Thomson Reuters had forecasted earnings of 97 cents share.

Revenue for the period declined to $20.5 billion from $21.2 billion, in the same quarter of last year. Analysts’ consensus estimate was for revenue of $20.97 billion.

Noninterest income declined 8% to $9.73 billion while net interest income rose 1% to $10.748 billion.

Income from mortgage banking dipped 43% to $1.61 billion however income from Trust and investment fees climbed 11% to $3.28 billion. Net income from trading activities declined 25% to $397 million.

Revenue from community banking fell 7% to $12.244 billion as revenue from mortgage banking declined but net income jumped 22% to $3.341 billion.

Revenue from wholesale banking slipped 1% to $5.871 billion while profit also slid 1% to $1.97 billion.

During the period, provisions for credit losses fell to $75 million from $1.59 billion. Net charge- offs fell to $975 million from $1.4 billion, for the same period of last year.

Net interest margin contracted to 3.38% from 3.66%, in the year-ago period.

 








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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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