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Wachovia Profit Rises, Helped by Golden West Acquisition

Wachovia, the fourth-largest U.S. bank, said on Friday its second-quarter profit rose 24%, helped by growth in lending and the purchase of Golden West Financial.

A Wachovia branch bank is shown in a Charlotte, N.C. file photo from July 20, 2006. After a rough year, the banking industry appears headed for another in 2007. (AP Photo/Chuck Burton, File)
Chuck Burton
A Wachovia branch bank is shown in a Charlotte, N.C. file photo from July 20, 2006. After a rough year, the banking industry appears headed for another in 2007. (AP Photo/Chuck Burton, File)

Net income for the Charlotte, North Carolina-based company was $2.34 billion, or $1.22 per share, up from $1.88 billion, or $1.17 a share, a year earlier.

Excluding merger costs, profit was $2.36 billion, or $1.23 per share. Analysts on average forecast profit of $1.22 per share, according to Reuters Estimates.

Total revenue rose 20% to $8.7 billion, compared with the Reuters estimate of $8.39 billion.

Net interest income was $4.46 billion, up from $3.68 billion in the year-earlier quarter. Non-interest expense rose 14% to $4.9 billion.

Wachovia bought Golden West in October, and agreed in May to acquire St. Louis-based A.G. Edwards for $6.8 billion, creating the second-largest U.S. retail brokerage.

Wachovia shares closed Thursday at $51.61 on the New York Stock Exchange. The shares have fallen 9% this year, compared with a 4% decline in the Philadelphia KBW Bank Index.