Wells Fargo reported record net income of $5.2 billion for first quarter 2013, up 22% from $4.2 billion in the same quarter in 2012. Revenue of $21.3 billion compared to $21.6 billion a year earlier.
In a presentation on its commercial loan portfolio, Wells Fargo showed that its lease financing component average balance in the first quarter 2013 was $12.4 billion with a corresponding yield of 6.78%, which was, by far, the highest return of all the bank’s commercial loan elements shown in the report, i.e., C&I loans were shown with an average balance of $184.5 billion in the first quarter with a corresponding yield of 3.73%.
On a year-over-year comparison, the bank’s lease financing portfolio in the same quarter in 2012 showed an average balance of $13.1 billion with a corresponding yield of 8.89%.
The bank said net charge-offs of $1.4 billion were down $976 million from first quarter 2012. Wells Fargo said the net charge-off rate of 0.72% (annualized) was the lowest since the second quarter 2006.
Chief risk officer Mike Loughlin said, “As a result of continued positive improvement to credit performance, we released $200 million from the allowance for credit losses in the first quarter. We continue to expect future reserve releases in 2013 absent a significant deterioration in the economic environment.”
John Stump, chairman and CEO, said, “Quarterly earnings and EPS increased at double-digit rates compared to the first quarter 2012, while loans and deposits demonstrated continued growth in a challenging economic environment. In addition, expenses continued to decline as we improved efficiency across the franchise, and returns on assets and equity increased and remained among the highest in our history.”
To read the Wells Fargo news release click here.
Category – Recent earnings Tags – Wells Fargo
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