(By Balaseshan) Wells Fargo & Co. (NYSE:WFC) reported better-than-expected quarterly earnings as lending rose and the amount of bad loans fell.
Net income was $4.6 billion or $0.82 per share for the second quarter, up from $3.9 billion or $0.70 per share in the year-ago quarter. In the first quarter , WFC earned 75 cents a share. Revenue was $21.3 billion, up 4 percent from the same period of last year, while down 1.6 percent from prior quarter.
Analysts, on average, polled by Thomson Reuters expected earnings of $0.81 per share on revenue of $21.35 billion.
As at June 30, total loans were $775.2 billion, compared with $766.5 billion at March 31, 2012. Excluding runoff in the non-strategic/liquidating portfolio of $5.1 billion, loans in the core portfolio grew $13.8 billion in the quarter.
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Net interest margin was 3.91 percent, down from 4.01 percent in the year-ago period. In the first quarter, net interest margin was 3.91 percent.
Meanwhile, JPMorgan Chase & Co. (NYSE:JPM) reported better-than-expected second quarter revenue. The stock added 0.59 percent in premarket trading on Friday.
JPM earned $5.0 billion or $1.21 per share for the quarter, compared with $5.43 billion or $1.27 per share in the year-ago quarter. Revenue was $22.9 billion, down 16 percent and 14 percent from second quarter last year and prior quarter, respectively. Analysts had expected earnings of $0.72 per share on revenue decline of 20.1 percent to $21.90 million.
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JPM also said it will amend interim financial statements for the first quarter of 2012. The restatement, which relates to valuations of certain positions in the synthetic credit portfolio in the firm's Chief Investment Office (CIO), will reduce JPM's net income by $459 million for the first quarter.
Wells Fargo shares, which have been trading between $22.58 and $34.59 over the past year, closed Thursday's regular session down 1.26% at $32.85.