Wells Fargo sees dip in mortgage originations as profits soar
Wells Fargo reported a first-quarter profit of $5.2 billion, a 22% increase from first the quarter of 2012, with shares surging 23% from the same period, to $0.92.
The company's boost in profit follows a $29.5 billion rise in average loans, accumulating to $798.1 billion.
Despite the growth in lending overall, mortgage lending alone suffered a $16 billion drop, falling to $109 billion from $125 billion in the prior quarter, the company announced.
The total residential mortgage servicing portfolio surmounted to $1.9 trillion during the period.
"Our company earned $5.2 billion in first quarter 2013, the highest quarterly profit in our history—another milestone demonstrating how Wells Fargo’s diversified business model continued to produce outstanding results," said Chief Financial Officer Tim Sloan.
He added, "This is our 13th consecutive quarter of earnings per share growth and - 3 - 8th consecutive quarter of record EPS. Average loans and deposits increased in the quarter, expenses were lower, and credit metrics improved with the net charge-off ratio down to the lowest level since second quarter 2006."
Additionally, Wells Fargo (WFC) posted a $21.3 billion revenue slightly downhill from $21.6 billion posted the first quarter of 2012.