Wells Fargo beats estimates
Wells Fargo & Company beat analysts' expectations for the second quarter, reporting Q2 net income of $4.6 billion (a record for the bank), or $0.82 per share. This is up from $3.9 billion, or $0.70 per share, a year ago and an increase of $4.2 billion, or $0.75 per share, over first quarter results.
Analysts were expecting roughly $0.81 per share for the second quarter. Revenue was $21.3 billion in the second quarter, compared with $21.6 billion in first quarter 2012--one of the few banks most likely that will be able to show year-over-year revenue increases.
The big driver was the bank's consumer operations, which was the biggest contributor to earnings year over year by far. Wholesale banking earnings declined, while wealth management earnings -- a very small part of the overall earnings pie -- rose a bit. Revenues from the community banking segment rose to $13.1 billion from $12.6 billion year over year; however, on a sequential basis revenues declined.
Mortgage operations were strong in the second quarter, as expected. Originations hit $131 billion, up from $129 billion in prior quarter. Applications hit of $208 billion, compared with $188 billion in prior quarter. The application pipeline stood at $102 billion at quarter end, compared with $79 billion at the end of the first quarter.
The bank remains relatively unencumbered by the sort of trading and investment banking weakness that will weigh heavier on other big banks.
- here's the results
Analyst bullish on Wells Fargo