Home

    You are here

WELLS FARGO INCREASE PROFIT AND INTEREST INCOME

You are here

WellsFargo on STOCK.COM

WELLS FARGO INCREASE PROFIT AND INTEREST INCOME

Jan 14 2015, 2.27pm GMT

STOCK.com

The U.S mortgage lender giant reported slight increase on quarterly profit above expectations.

Image: iStock © RiverNorthPhotography

Earnings Forecast: $1.02 per share - Actual: $1.02

Revenue Forecast: $21.23 billion – Actual: $21.4 billion

Unlike the asset bank JPMorgan, which released below expectation figures today, Wells Fargo depends on mortgages for income and with the growth in the U.S economy, the lender has seen increases in both profit and net interest income in the fourth quarter.

Thomson Reuters analysts listed forecast at earnings of $1.02 per share with revenue of $21.23 billion – actual figures report net income at $5.7 billion, or $1.02 per share, compared with $5.6 billion, or $1.00 per share, on revenue of $21.4 billion for fourth quarter 2013.

Highlights of fourth-quarter report:

  • Net income of $5.7 billion, up 2% from fourth quarter 2013
  • Diluted EPS of $1.02, up 2%
  • Revenue of $21.4 billion, up 4%
  • Total average loans of $849.4 billion, up $36.1 billion, or 4%, from fourth quarter 2013
  • Quarter-end loans of $862.6 billion, up $40.3 billion, or 5%
  • Quarter-end core loans of $801.8 billion, up $60.3 billion, or 8%
  • Total average deposits of $1.1 trillion, up $89.4 billion, or 8%
  • Nonaccrual loans down $2.8 billion, or 18%
  • $250 million reserve release

Highlights of full-year 2014 report:

  • Net income of $23.1 billion, up 5% from 2013
  • Diluted earnings per share (EPS) of $4.10, up 5%
  • Revenue of $84.3 billion, up 1% from 2013 $83.8
  • Pre-tax pre-provision profit (PTPP) of $35.3 billion, up 1%
  • Return on assets (ROA) of 1.45% and return on equity (ROE) of 13.41%
  • Returned $12.5 billion to shareholders through dividends and net share repurchases, up from $7.2 billion in 2013

Chairman and CEO John Stumpf said in the release, “As the U.S. economy continues to build momentum, I'm optimistic that our diversified business model will continue to benefit all of our stakeholders in 2015.” The diversification Stumpf speaks of is in terms of fee generation with 10 fee incomes in the business stream: Total Trust & Investment Fees is the largest at 36%, with other fees obtained through Deposit Service Charges, Insurance, Card fees, other fees, mortgage banking, trading, debt securities, equity investments and noninterest income.

Due to low expectations from analysts, Wells Fargo shares fell on Tuesday’s trading by 1.3%. Share price now stands at 51.62 at opening of trade.

MT4 chart: WellsFargo

WellsFargo on STOCK.com

Trade stock CFDs on STOCK.com with full training given to all clients

Stocks Block Actions

Trading Platforms

MetaTrader

Through a simple native App download, be ready to log on to the powerful, intuitive MT4 platform and trade multiple assets on your desktop or through mobile

More on MetaTrader

WebTrader

Online access - anytime, anywhere - to your secure STOCK.com account, through desktop, tablet and mobile interfaces with no download necessary

More on WebTrader

Trading in CFDs involves significant risk to your invested capital