Wells Fargo & Company Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2012; Reports Net Loan Charge-Offs for the Fourth Quarter Ended December 31, 2012
January 11, 2013 at 06:30 pm IST
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Wells Fargo & Company reported consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported net interest income of $10,643 million compared to $10,892 million a year ago. Income before income tax expense was $7,221 million compared to $6,057 million a year ago. Net income was $5,090 million compared to $4,107 million a year ago. Net income attributable to common stock was $4,857 million or $0.91 per share diluted compared to $3,888 million or $0.73 per share diluted a year ago. Return on assets was 1.46% compared to 1.25% a year ago. Return on equity was 13.35% compared to 11.97% a year ago. Revenue in the quarter increased 7% to $21.9 billion, up $1.3 billion from a year ago. Total revenue was $21.9 billion was up 7% from a year ago. Pretax pre-provision profit increased 12% from a year ago.
For the year, the company reported net interest income of $43,230 million compared to $42,763 million a year ago. Income before income tax expense was $28,471 million compared to $23,656 million a year ago. Net income was $18,897 million compared to $15,869 million a year ago. Net income attributable to common stock was $17,999 million or $3.36 per share diluted compared to $15,025 million or $2.82 per share diluted a year ago. Return on assets was 1.41% compared to 1.25% a year ago. Return on equity was 12.95% compared to 11.93% a year ago. Revenue for the year was $86.1 billion, up 6% from $80.9 billion in 2011. In addition, the company had a total of $2.2 billion of operating losses in 2012, almost $1 billion higher than the amount the company had in 2011, as the company resolve many significant matters related to mortgage business.
Net loan charge-offs improved to $2.1 billion in fourth quarter 2012, or 105 basis points of average loans, compared with $2.6 billion in fourth quarter 2011, or 136 basis points of average loans. On a linked-quarter basis, net loan charge-offs improved by $277 million, or 16 basis points of average loans. Excluding the $321 million in charge-offs resulting from the adjustments associated with the OCC guidance, net charge-offs in fourth quarter 2012 were $1.8 billion or 89 basis points with commercial losses of $255 million, or 29 basis points, and consumer losses of $1.5 billion or 138 basis points.
Wells Fargo & Company is a leading American banking group. The Net Banking Product (before intra-group eliminations) breaks down by activity as follows:
- retail and commercial banking (57,9%): sales of standard and specialized banking products and services (mortgage lending, real estate credit, consumer credit, insurance, etc.);
- finance, investment, and market banking (22,9%);
- profit management, brokerage, and pension fund management (19.2%).
At the end of 2020, the group had USD 1,404.4 billion in current deposits and USD 887.6 billion in current loans.
Wells Fargo & Company Reports Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2012; Reports Net Loan Charge-Offs for the Fourth Quarter Ended December 31, 2012