Wells Fargo (WFC) reported a $2.5bn net income for Q110 as trust and investment fees grew 20% from the previous quarter to $2.7bn. The profits narrowed from $2.82bn in the last quarter of 2009 after $247m in integration expenses of Wachovia Bank. But Wells reported $21.4bn in revenue for the quarter, up 2% from Q409. Mortgage applications in the bank’s origination pipeline increased to $59bn, up $2bn from the previous quarter. Credit, Wells said, seems to have “turned a corner.” Wells continued to build capital in the balance sheet, raising Tier 1 capital to $98.3bn with a ratio of 10%, up from 9.3% at the end of 2009. Since the Wachovia acquisition, Wells reduced the amount of high-risk consumer loans by $4.3bn in Q110. Nonperforming assets continued to increase over the quarter, reaching $31.5bn in Q110, though the growth has slowed. It’s an increase of 14% from Q409. The total number of foreclosed assets continues to grow as well, reaching $4.01bn of loans in Q110, up 27% from Q409, despite modification efforts. Wells put more than 523,000 loans into active and trial modifications through the Home Affordable Modification Program (HAMP) and its own programs between January 2009 and the end of Q110. Write to Jon Prior.
Jon Prior was a reporter with HousingWire through late 2012.see full bio
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Jon Prior was a reporter with HousingWire through late 2012.see full bio