Wells Fargo earned $3.9 billion in 2Q
Wells Fargo & Co. (WFC) posted a second-quarter profit of $3.9 billion, or 70 cents per share, up from $3.8 billion, or 67 cents per share, during the same period a year ago. The San Francisco-based banking giant attributed its 29% growth in earnings to higher revenue, increased loans and deposits as well as improved credit quality and higher capital levels. The firm's earnings were in-line with analyst projections, which put earnings in the 69 cent-per-share range. Revenue rose slightly in the second quarter hitting $20.4 billion, up from $20.3 billion in the first quarter. The company's overall credit quality improved with Wells recording only $2.8 billion in net loan charge-offs — a measure of debt that is unlikely to be repaid. That is down $372 million from the first quarter and $1.7 billion lower than last year. The company's nonperforming assets fell $2.6 billion to $27.9 billion. The bank had $751.9 billion in loans at June 30, up from $751.2 billion at the end of the first quarter. Wells Fargo said it continued to liquidate loan portfolios as part of a planned reduction, but said the decreases were offset by an expansion in the company's commercial loan portfolios. Write to Kerri Panchuk.