Wells Fargo earnings rise as credit quality improvesFriday 11 April 2014 18.04
Wells Fargo today reported higher earnings on better credit quality as increases in industrial and commercial loans offset declines in many home-lending categories.
Wells Fargo, the nation's largest mortgage lender, said first-quarter earnings were $5.6 billion, up 14% on the same time last year.
"Our solid first-quarter results again demonstrated the ability of our diversified business model to perform for shareholders," chief executive John Stumpf said in a statement.
"First-quarter 2014 earnings were another record for our company and capital levels continued to strengthen," he added.
The San Francisco-based lender continued to notch better results due to improving credit quality. Credit losses were $825m in the January-March quarter, compared with $1.4 billion a year ago.
The improvement comes as more consumers pay bills on time and the bank's stash of non-performing assets diminishes.
Total loans at Wells Fargo stood at $826.4 billion, up $4.2 billion from the previous year. Improving categories included commercial and industrial property.
But Wells Fargo reported new mortgage worth $36m, down $67m from the year ago level. The company also had fewer mortgage applications and a smaller application pipeline.
The results translated into $1.05 per share, better than the 97 cents forecast by Wall Street analysts.
Revenues slipped from $21.26 billion to $20.63 billion. Analysts had forecast revenues of $20.6 billion.