EmailWells Fargo (WFC $25.19 -1.48) reported third quarter earnings of $0.72 per share, $0.01 worse than the Capital IQ Consensus Estimate of $0.73.
Revenues fell 6.0% year/year to $19.63 billion versus the $20.34 bln consensus. Capital increased with Tier 1 common equity reaching $91.9 billion under Basel I, or 9.35% of risk-weighted assets. Under current Basel III proposals, the Tier 1 common equity ratio was an estimated 7.41%.
"The economic recovery has been more sluggish and uneven than anyone anticipated... We can't change the economic environment, yet we have worked hard to control the variables we can -- making our products and services more relevant to individuals and businesses, focusing on the customer, making as many loans as possible and growing new relationships -- as well as fostering longtime ones. We see the results of this focus in growing cross-sell, deposits, and loans. Customers need a trusted financial partner, especially in challenging economic times.Wells Fargo has proven to be that partner over and over again... This was a strong quarter for Wells Fargo, with solid growth in loans, deposits, investment securities and capital, along with improved credit quality and lower expenses... Credit quality continued to improve in the third quarter, our seventh consecutive quarter of declining loan losses and the fourth consecutive quarter of lower nonperforming assets."
Third quarter net charge-offs were $2.6 billion, or 1.37 percent (annualized) of average loans, down $227 million from second quarter net charge-offs of $2.8 billion (1.52 percent). Return on average assets of 1.26%.
