Wells Fargo reported Q3 revenue of $9.85 billion was up $919 million, or 10 percent, from a year ago. The bank also reported record diluted earnings per common share of $0.68 for third quarter 2007, up 6 percent from $0.64 in third quarter 2006. Net income was $2.28 billion, up 4 percent from $2.19 billion in third quarter 2006.
Net credit losses were $892 million (1.01 percent of average loans, annualized) up from $720 million (0.87 percent) in second quarter 2007 and from $663 million (0.86 percent) in third quarter 2006. “Almost half of the increase in net credit losses from second quarter 2007 was concentrated in the home equity portfolio, where losses accelerated in the quarter given the steeper than anticipated decline in national home prices,” said Chief Credit Officer Mike Loughlin
The company’s shares are off over 1% to $35.50 before the market open.
Douglas A. McIntyre