Wells Fargo results

Wells Fargo Quarterly Profit Falls

Excerpts:

Wells Fargo & Co on Wednesday said its fourth-quarter profit fell 38 percent, the first decline in more than six years, hurt by rising losses from home equity loans. However, the decline was smaller than expected.
...
Nonperforming assets rose 60 percent from a year earlier to $3.87 billion.

"We did not fully appreciate the severity of the residential real estate downturn," Chief Credit Officer Mike Loughlin said in a statement.

Moody's Investors Service affirmed Wells Fargo's high investment-grade ratings, saying the bank has enough capital and financial flexibility to absorb a "relatively high level" of expected charge-offs in the next 1-1/2 to two years.


Comment: Wells was profitable the quarter and for the year, in contrast with Citigroup. 2008 and perhaps 2009 will be challenging for the banking industry!