Wells Weathers the Storm
Bad loans may have been the headline, but the real story at Wells Fargo today was record profit.
The biggest U.S. home lender delivered a 1-2 punch on profit and revenue in the second quarter.
Profit surged 81% to $3.17 billion, while revenues nearly doubled to $22.51B.
While profits “made the grade”, loans caused concern.
Particularly from a bank that took $25B of federal bailout money.
Bad loans soared 45% to $18.34 billion.
That included a whopping 69% jump from commercial and commercial real estate loans.
On Closing Bell with Maria Bartiromo, CFO Howard Atkins told Maria that hope is on the horizon.
The company is seeing signs of “improvement in the consumer”.
Atkins said the company is also starting to “see better mortgage applications” with volumes in the third-quarter picking up steam.
As far as integration goes, Atkins said “everything is on pace with Wachovia, and more importantly, they are seeing a lot of two-way synergies with the newly acquired company”.
Bad loans vs. record profit. Quite a quarter for Wells Fargo!
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