Wells Fargo Nets $3bn in Q210 Earnings as Mortgage Applications Rise 14%
Wells Fargo (WFC) reported $3.06bn in net income in Q210, up 20% from the previous quarter as mortgage applications with the San Francisco-based bank increased 14% to $143bn worth of loans. The Q210 income is up from the $2.55bn reported in Q110. Earnings per common share reached $0.55 for the second quarter. For the first six months of 2010, Wells Fargo has earned $5.6bn in net income, just down from $6.2bn reported for the first six months of last year. Wells Fargo reported $143bn in mortgage applications in Q210, up 14% from $125bn in the previous quarter. According to the bank, 58% of those applications were refinances. The Wells unclosed pipeline of applications increased 15% to $68bn, the highest mark since the $90bn reported in Q209. Wells Fargo was the nation’s largest mortgage originator in 2009 by writing $427bn in home loans. The bank was also the second largest servicer that year with $1.7trn in loans by the end of Q409. Wells reduced its provision for credit losses by $500m in Q210 to $4bn as credit quality improved on 30-day delinquencies across the board including in Wells Fargo Home Mortgage. Its Tier 1 capital ratio increased to 10.4% in Q210, up from 9.9% reported in the previous quarter. Wells reported its integration with Wachovia is proceeding as planned. California regional banking conversions have been completed with final conversions to be completed in Texas and Kansas July 24. Eastern market banking conversions are expected to be scheduled at the beginning of the third quarter. Write to Jon Prior. The author holds no relevant investments.