Wells Fargo (WFC) Q1 Net Income Surges 48%, Sales Fall Modestly
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Price: $82.64 --0%
EPS Growth %: +6.9%
Financial Fact:
Salaries: 4.22B
Today's EPS Names:
CRMT, FOMI, FLES, More
EPS Growth %: +6.9%
Financial Fact:
Salaries: 4.22B
Today's EPS Names:
CRMT, FOMI, FLES, More
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Shares of Wells Fargo (NYSE: WFC) are slightly lower in pre-open trade following the bank's latest quarterly earnings report. At last check, the stock was down 1 percent to around $29.75.
Wells Fargo issued first-quarter net income of $3.8 billion, up 48 percent from the same quarter last year, and up 10 percent from the fourth quarter of 2010. On a per-share basis, Wells Fargo reported earnings of 67 cents, beating the Street estimate by a penny.
The bank reported sales of $20.3 billion for the quarter ended March 31, 2001, down more than 5 percent from the first quarter of last year. Wells Fargo said the lower revenue reflects a $741 million decline in mortgage banking fee income. Analysts had been looking for Wells Fargo to report sales of $21.24 billion.
Wells Fargo said capital ratios strengthened over the quarter: Tier 1 common equity ratio of 8.9 percent under Basel I at March 31, 2011, and an estimated Tier 1 common equity ratio of 7.2 percent under current Basel III capital proposals.
CEO John Stumpf said, "Our strong first quarter results reflected positive trends in our business fundamentals as credit quality improved, capital ratios increased and cross-selling reached new highs. As the economy continued an uneven recovery, our business customers increased borrowing and utilization of credit lines – a hopeful sign that businesses are once again investing for growth. Consumers continue to be hesitant to borrow, yet our robust deposit growth reflects the strong loyalty and market share we enjoy among customers."
Wells Fargo issued first-quarter net income of $3.8 billion, up 48 percent from the same quarter last year, and up 10 percent from the fourth quarter of 2010. On a per-share basis, Wells Fargo reported earnings of 67 cents, beating the Street estimate by a penny.
The bank reported sales of $20.3 billion for the quarter ended March 31, 2001, down more than 5 percent from the first quarter of last year. Wells Fargo said the lower revenue reflects a $741 million decline in mortgage banking fee income. Analysts had been looking for Wells Fargo to report sales of $21.24 billion.
Wells Fargo said capital ratios strengthened over the quarter: Tier 1 common equity ratio of 8.9 percent under Basel I at March 31, 2011, and an estimated Tier 1 common equity ratio of 7.2 percent under current Basel III capital proposals.
CEO John Stumpf said, "Our strong first quarter results reflected positive trends in our business fundamentals as credit quality improved, capital ratios increased and cross-selling reached new highs. As the economy continued an uneven recovery, our business customers increased borrowing and utilization of credit lines – a hopeful sign that businesses are once again investing for growth. Consumers continue to be hesitant to borrow, yet our robust deposit growth reflects the strong loyalty and market share we enjoy among customers."
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