Wells Fargo posts Net income higher than the costs of credit facility

April 20, 2011, 8: 48 pm EDT by Dakin Campbell

(Updates with income, mortgage banking, from the first paragraph.)

April 20 (Bloomberg) — Wells Fargo & Co., the largest of the U.S. home lender, said profit in the first quarter rose by 48 per cent that charges for soured and ready-to-business real estate fell. Revenue and loans has decreased, and shares fell in trade at the beginning.Net income increased to a record 3.76 billion dollars, or 67 cents a diluted share, of $ 2.55 billion, or 45 cents, a year earlier, the San Francisco-based Bank said today in a statement. Fourteen analysts surveyed by Bloomberg estimated profit not adjusted from 66 cents per share. "Income fell 5.2% to 20.3 billion of $ on the lower costs of banking mortgage and outstanding loans fell."It is clear that the credit has come to better in all areas, said Andrew Marquardt, an analyst of Evercore Partners Inc., New York until the results were announced. "Credit costs are improved both in terms of charge-offs and releases reserve."President and CEO John Stumpf, 57, is based on the release of reserve as income gets under low pressure of the loan application and new financial rules that CAP the fees, banks can charge bank overdrafts and debit card transactions. Limits on the debit card fees charged to merchants "no sense" and distort the free market economy, Stumpf wrote in his annual letter to shareholders, published in March. "Our strong first-quarter results reflect positive trends in our core business as credit quality improved, capital ratios have increased and cross-selling reached new heights,"Stumpf said in the statement."Results of the quarter of reserve Press ReleaseThe were stimulated by a release of reserve of 1 billion dollars in credit quality and expected future losses on bad loans improved. Mortgage banking income decreased by 18% from a year earlier to 2.02 billion. Appearances dropped to $ 84 billion of 128 billion in the fourth quarter, for the prepared medium Banque.Exceptionnelles fell 5.4% to 754.1 797.4 billion billion the previous year, mainly by a reduction in demand consumersthe Bank said. The average return on these assets dropped to 5.03% of 5.09 percentWells Fargo, ranked fourth by the United States assets, decreased by 3% this year at the New York Stock Exchange, closing at $30.07 yesterday, compared with a decrease of 3.3% for 24 KBW Bank index - business. The stock slipped 49 cents to $ 8 h 31 New York.The 29.58 more large shareholder is Berkshire Hathaway Inc. of Warren Buffett, who held the 342,6 million shares, or 6.5 per cent at year end.Four more major BanksWells Fargo is the last of the four major U.S. commercial banks to announce the results of the first quarter. The largest lender U.S., Bank of America Corp., said on April 15 in the first quarter profit fell 36% to $ 2.05 billion.JPMorgan Chase & Co., the second largest bank by assets, said the 13 April income net increased from 67% to $ 5.56 billion. On 18 April, Citigroup Inc., the third great, said that net income fell from 32% to $ 3 billion. JPMorgan and Citigroup are based in New York, while Bank of America is based in Charlotte, North Carolina.All four banks were among the 14 mortgage services which will be forced to pay the owners of the losses on loans that have been poorly used in the wake of real estate or seizures collapseunder the terms of an agreement with banking regulators announced last week. JPMorgan said it can to 1.1 billion in costs related to agreements and require an additional 3 000 employees, according to a transcript of the Conference call.Dividend, BuybackLast months, Wells Fargo announced a special dividend in the first quarter to 7 cents per share, boosting pay 12 cents, after receiving the approval of the Federal Reserve. It was the first increase in the payment as the company slashed the dividend to 5 cents per share from 34 cents in May 2009. The Bank has said that he could redeem an additional $ 200 million shares.Wells Fargo is in the last year of the integration of Wachovia Corp., purchased the lender based in Charlotte, North Carolina in the credit crisis. It reported more than 25 billion dollars in profits after buying Wachovia, once the fourth U.S. bank.Costs of lo reached 5.1 per cent to $ 12.1 billion $ 12.7 billion a year ago. That included 472 million of dollars in losses, "almost all" from seizures higher litigation costs and seasonal higher compensation expenses, the Bank said operating. "We continue to focus on the management of costs in the whole of our society, without compromising future growth opportunities,", said Chief Financial Officer Tim Sloan." "Certain expenses in the quarter remained high, including resolution of loan costs" and the costs of its merger with Wachovia Corp. 2008.

-With the help of Dawn Kopecki and Donal Griffin in New York. Editors: Dan Reichl, Rick Green

To contact the reporter on this story: Dakin Campbell in San Francisco at dcampbell27@bloomberg.net.

To contact the editor responsible for this story: David Scheer in dscheer@bloomberg.net.

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