Financial Report Financial reports from the largest companies of the world

Wells Fargo’s profit is increasing

The fourth-largest U.S. bank Wells Fargo reported 48% jump in profit in the first quarter after holding its lending increased and decreased troubled assets. The shares of Wells Fargo, however, cheaper by almost 5% to 28.60 dollars in early trading on the New York Stock Exchange. The net profit of San Francisco-based financial services company rose to 3.76 billion dollars, or 67 cents a share, from 2.55 billion dollars, or 45 cents a share, a year ago. The revenues in the first quarter but fell by 5.2 percent annually to 20.3 billion dollars. The market forecasts were for net profit per share from 66 cents to 21.2 billion dollars.
"While the economy continues its uneven recovery, our business customers increased withdrawals and loans using lines of credit - a reliable sign that businesses are again investing for growth," said president and CEO of Wells Fargo, John Stumpf in a statement. The consumers, however, "continue to fluctuate in the drawing of new loans," he said. The net interest margin for the bank declined to 4.05 percent for the quarter from 4.27 percent a year earlier.
The value of loans granted by the Wells Fargo loans amounted to 751.2 billion dollars as of March 31 compared with 757.3 billion dollars as of December 31st, 2010. The provisions for problem loans for the quarter were 3.21 billion dollars or 1.73% of total loans, compared with a share of 2% at the end of the previous quarter. The shares of Wells Fargo are weakened by 9% over the past 12 months. For comparison, the index of financial companies S & P Financials fell 3 percent during the same period.