Enter multiple symbols separated by commas

Washington Mutual Profits Up on Sale of Asset Management Unit

Washington Mutual, the largest U.S. savings and loan, said fourth-quarter profit rose 22%, as a one-time gain from the sale of business offset a loss in its mortgage unit and charges to help the company prepare for a housing slowdown.

Net income for the Seattle-based thrift rose to $1.06 billion, or $1.10 per share, from $865 million, or 85 cents, a year earlier.

Results included a $415 million aftertax gain in the quarter from the sale of its WM Advisors Inc. asset management unit to Principal Financial Group Inc.

The thrift also recorded charges of $100 million for cost-saving initiatives, and other charges for the sale of mortgage servicing rights.

Analysts had expected Washington Mutual to earn 88 cents in the fourth-quarter, according to an estimate compiled by Thomson Financial.

Washington Mutual Chief Executive Kerry Killinger said strength in retail banking, card services and commercial banking helped offset a "difficult interest rate and operating environment, which particularly impacted the results in our home loans business."

The nation's third-largest mortgage lender posted a $122 million quarterly loss from mortgage lending. That unit lost $48 million for the year, compared with a profit of $1.03 billion
in 2005.

The company will also host a conference call, over the phone and through its website, at 5 pm New York time.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.