2Q earnings at Wells Fargo a record
Wells Fargo today reported record net income of $3.17 billion in the second quarter, helped in part by its acquisition of Wachovia. WFAE's Simone Orendain has more: Wells Fargo's net income in the second quarter was up 81 percent from the same period last year. After figuring in earnings per share of 57 cents, the San Francisco bank's net income came to about $2.6 billion in the quarter. The report beat Wall Street's expectations of 34 cents a share. In a prerecorded earnings report, Wells Fargo Chief Financial Officer Howard Atkins said a large number of the bank's divisions contributed to the results. "The strength of our results should not be particularly surprising. Wells Fargo has a long track record of building its franchise in all economic environments by profitably growing its 80-plus businesses. And this quarter was no exception," he said. Well Fargo had record revenues of $22.5 billion for the quarter. And the bank says Wachovia contributed 39 percent of revenues for the period. Wells Fargo acquired Charlotte-based Wachovia at the end of last year. The bank says the recession and higher unemployment continue to drive credit losses. To make up for this, the bank has dropped its auto loan and home equity line that are serviced by outside brokers. It's also been chipping away at the Pick-A-Pay mortgage program it inherited from Wachovia. Wells Fargo has been adjusting mortgages related to this program that spawned numerous defaults and totals $90 billion today. The bank accepted $25 billion from the federal Troubled Asset Relief Program. Atkins says the bank is waiting for word from the Treasury on when it can pay back the money.