Join        Login             Stock Quote

Wells Fargo (WFC) Shares Off Despite Higher 4Q Earnings, Revenue

 January 11, 2013 08:20 AM

(By Balachander) Wells Fargo & Co (NYSE: WFC) reported an increase in quarterly earnings and revenue, yet the company's shares dropped 1.10 percent in premarket trading on Friday.

Earnings per share (EPS) increased 25 percent to 91 cents, versus market expectations of 89 cents. Net income grew 24 percent to $5.09 billion for the fourth quarter. On a sequential basis, earnings rose 3 percent.

Revenue was $21.9 billion, up 6.0 percent from the same period of last year and 3.3 percent from the prior quarter. Wall Street analysts, on average, expected a revenue increase of 3.30 percent.

[Related -JPMorgan Chase & Co. (JPM): Capital Concerns Should Ease In 2014]

Net interest income fell 2 percent from last year.

Provision for credit losses declined 10 percent to $1.83 billion.

"We saw the continued benefits of our diversified business model and reported record full year and fourth quarter earnings, robust deposit and solid loan growth, and strong performance across our business units," commented Chairman and CEO John Stumpf. "While our fourth quarter included some noteworthy items, we achieved strong returns on average assets and equity of 1.46 percent and 13.35 percent, respectively."

Net interest margin (NIM) was 3.56 percent, down from 3.89 percent in the year-ago period. In the third quarter, NIM was 3.66 percent.

The decline in NIM reflected strong deposit growth of $30 billion in the quarter as well as the ongoing low rate environment and pressure on asset yields, the company said.

[Related -Why dividend-paying utilities stocks could lag again in 2014]

As at Dec. 31, total loans were $799.6 billion, up $16.9 billion from Sept. 30, 2012.

Wells Fargo shares, which have been trading between $28.77 and $36.60 over the past year, closed Thursday's regular trading at $35.40.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageWill The Sluggish US Housing Market Perk Up This Year?

Housing remains a weak spot for the US economy, as suggested by yesterday’s news of a bigger-than-expected read on...

article imageThe Only Homebuilders To Own Right Now

Now is the time to invest in the housing market, but you must be read on...

article imageUS Economic Growth Slows in Q4

US GDP growth fell short of expectations in last year’s fourth quarter, the government reports. National read on...

article imageReversals After a Gap on the Open Could Mean Anything

Yesterday stock indexes gapped up on the open but then reversed course to close sharply lower. This type of read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Why I Like Financial Stocks For 2014
More Articles on: Finance

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.