Summary
Wells Fargo & Company (WFC) reported strong financial results for the quarter ended September 29, 2011, demonstrating resilience amidst a volatile economic environment. Net income reached a record $4.1 billion, a 21% increase year-over-year, driven by lower provisions for credit losses and reduced noninterest expenses, which more than offset a decline in total revenue. Diluted earnings per common share also saw a significant increase to $0.72, up 20% from the prior year. The company continued to exhibit solid growth in loans and core deposits, with deposits funding 111% of the loan portfolio. Credit quality showed improvement with lower net charge-offs and nonperforming assets, reflecting effective risk management and the continued integration of Wachovia. Capital levels remained robust, with the Tier 1 common equity ratio growing to 9.34%. The integration of Wachovia is progressing well, with retail banking store conversions completed and remaining integration activities expected by the first quarter of 2012. The company also highlighted its commitment to helping customers and the economy through various initiatives, including mortgage modifications and small business lending.
Financial Highlights
36 data points| Interest Expense | $1.64B |
| Net Income | $4.05B |
| EPS (Basic) | $0.73 |
| EPS (Diluted) | $0.72 |
| Shares Outstanding (Basic) | 5.28B |
| Shares Outstanding (Diluted) | 5.32B |
Key Highlights
- 1Record net income of $4.1 billion, up 21% year-over-year.
- 2Diluted earnings per common share of $0.72, up 20% year-over-year.
- 3Total loans increased to $760.1 billion, while average core deposits grew 8% year-over-year to $836.8 billion.
- 4Provision for credit losses significantly decreased by $1.6 billion year-over-year.
- 5Efficiency ratio improved to 59.5% from 61.2% in the prior year.
- 6Tier 1 common equity ratio increased to 9.34%.
- 7Completion of retail banking store conversions related to the Wachovia integration.