Wells reportings quarterly earnings

Wells Fargo Reports Beats Estimates

Excerpt:

Wells Fargo continues to cheer billionaire investor Warren Buffett. The bank reported third-quarter earnings, beating estimates and demonstrating solid growth as it digs out from the financial crisis.

In early trading, Wells Fargo’s shares are indicated modestly higher.

The San Francisco bank reported net income of $3.34 billion, or 60 cents a share, besting estimates compiled by Thomson Reuters of 55 cents a share. That’s a record quarter, profit wise, for Wells. The bank also said revenue came in at $20.9 billion, in line with estimates.

On the mortgage foreclosure front, the bank said it has “no plans to initiate moratorium on foreclosures.” Sounds confident. As noted earlier, Deutsche Bank estimates that Wells Fargo has the potential for a pre-tax hit of $5.5 billion and a potential for a total loss of $12 billion in the mortgage mess.

The bank continues to make big provisions for bad moves made in headier days of yore, but the size of the provisions are moving in the right direction. It reported net loan charge offs of $4.1 billion for the quarter. It also said it had a $3.45 billion provision for credit losses, which the bank said “continued to trend down.”

Comment: Good news for my company