Wells Fargo reported Q3/15 net income of $5.8 billion was up from $5.7 in the same quarter a year ago. Earnings per share of $1.05 exceeded analysts’ expectations of $1.04. Revenue was $21.9 billion, 3% higher compared to $21.2 billion in Q3/14.
The following highlights were excerpted from the news release:
“Wells Fargo’s strong third quarter results reflected the ability of our diversified business model to generate consistent financial performance in an uneven economic environment while continuing to meet our customers’ financial needs,” said chairman and CEO John Stumpf. “Compared with a year ago, we grew loans, deposits and capital, and returned more capital to shareholders through dividends and share buybacks. Our balance sheet and credit results remained strong and our 265,000 team members continue to focus on helping our customers succeed financially.”
“Credit performance remained strong during the quarter,” said chief risk officer Mike Loughlin. “The quarterly loss rate (annualized) remained low at 0.31 percent and nonperforming assets declined by $1.1 billion, or 30% (annualized), from the prior quarter driven by lower nonaccrual loans. The allowance for credit losses in the third quarter remained flat (no reserve release) as continued credit quality improvements in the residential real estate portfolio were offset by higher commercial reserves reflecting deterioration in the energy sector. Future allowance levels may increase or decrease based on a variety of factors, including loan growth, portfolio performance and general economic conditions.”
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