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Wells Fargo posts record profits

By Kay Steiger
Friday, July 13, 2012 15:41 EDT
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US bank Wells Fargo said Friday it had record profit in the second quarter, with double-digit growth in earnings and strong gains in loans and deposits. (AFP Photo/Scott Olson)
 
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US bank Wells Fargo said Friday it had record profit in the second quarter, with double-digit growth in earnings and strong gains in loans and deposits.

Wells Fargo said that net income rose 18 percent in the second quarter from a year ago, to $4.4 billion.

Earnings per share also leaped, by 17 percent, to a record 82 cents, the San Francisco-based bank said. That was slightly above the 81 cents predicted.

However, revenue missed expectations with a 4.0 percent increase to $21.29 billion.

“Wells Fargo’s strong financial results this quarter again reflect the benefit of our diversified business model,” said John Stumpf, chairman and chief executive.

“While the economic recovery remains uneven, we continued to meet our customers’ financial needs and benefited from signs of stabilization in the housing market,” he said.

Wells Fargo, the nation’s largest home mortgage lender, agreed to pay $175 million to resolve allegations that it charged African-American and Hispanic borrowers higher fees and interest rates than whites, the Justice Department said Thursday.

The company has denied the claims.

Wells Fargo reported Friday that average core deposits were $880.6 billion, up 9 percent from the 2011 second quarter.

Net charge-offs and nonperforming assets declined from the first quarter, it said.

Shares in Wells Fargo rose 1.3 percent to $33.29 in opening trade on the New York Stock Exchange.

Kay Steiger
Kay Steiger
Kay Steiger is the managing editor of Raw Story. Her contributions have appeared in The American Prospect, The Atlantic, Campus Progress, The Guardian, In These Times, Jezebel, Religion Dispatches, RH Reality Check, and others. You can follow her on Twitter @kaysteiger.
 
 
 
 
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