Record profits at Wells Fargo

SAN FRANCISCO
July 17, 2007 9:04am

The second quarter set new records for revenues and net income for Wells Fargo & Company (NYSE: WFC), the San Francisco-based company says.

Revenue reached $9.89 billion, up 13 percent from the prior year and up 19 percent (annualized) from the first quarter.

Net income was $2.28 billion, a record for the period. The figure is up 9 percent from the prior year's $2.09 billion.

The bank says it had diluted earnings per share of 67 cents, up 10 percent from 61 cents a year earlier.

Average total loans were up 11 percent from the prior year and up 13 percent (annualized) from the prior quarter.

Average core deposits were up 11 percent from the year-ago quarter and up 14 percent (annualized) from Q1, the bank says.

The growth was “all the more remarkable because of the industry headwinds of a weaker housing market, a flat yield curve and slower deposit growth,” says President and CEO John Stumpf.

“The vast majority of this growth has come from earning more business from our current customers, but we’ve also been a disciplined, effective acquirer, which brings us more new customers and the opportunity to satisfy all their financial needs,” Mr. Stumpf says.

During the quarter, Wells Fargo acquired Placer Sierra Bancshares in California and the U.S. construction lending business of CIT Group Inc.

“We’re on track to complete our acquisition by year end of Greater Bay Bancorp, with $7.4 billion in assets, the third largest bank acquisition in our company’s history,” he says.