Wells Fargo posted sturdy second-quarter profits of
$5.27 billion that were up 19.7 percent from the year before, bolstered by
robust earnings in its mortgage business that improved despite rising interest
rates, the bank reported Friday.
During the April-June quarter, San Francisco-based Wells Fargo also posted revenue of $21.4 billion, which was up 1 percent from the year-ago second quarter.
"Our results reflected the strength of our diversified business model," Wells Fargo CEO John Stumpf said. "Compared with the prior quarter, we grew loans, deposits, and net interest income."
The results topped Wall Street's expectations. Per-share profits were 98 cents, compared with a prediction of 93 percent. Revenue also topped analysts' projections.
The bank said the quality of its loan portfolio improved during the quarter.
"Consumer loss levels have improved rapidly due primarily to the positive momentum in the residential real estate market," Chief Risk Officer Mike Loughlin said.
Non-performing assets such as bad loans totaled $21.1 billion, down 7.8 percent from the year-ago quarter. Foreclosed assets totaled $3.1 billion, down 8.8 percent.
Originations for home mortgages totaled $112 billion in the second quarter, up 2.8 percent from the year before.
"Home prices are improving faster and in more markets than expected," Loughlin said.
Contact George Avalos at
408-373-3556 or 925-977-8477. Follow him at twitter.com/george_avalos.
(c)2013 the Contra Costa Times (Walnut Creek, Calif.)
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