Wells Fargo has reported net income of $3.17 billion in the second quarter of 2009, up 81 percent from last year, and net income of $6.22 billion for the six months ended June 30, 2009, up 66 percent from last year
It also says it had record revenue of $22.5 billion, up 28 percent (annualized) from the first quarter. This included legacy Wells Fargo revenue of $13.6 billion, up 19 percent from last year; and year-to-date legacy Wells Fargo revenue of $25.9 billion, up 18 percent.
Wachovia, now part of Wells Fargo, contributed 39 percent of consolidated revenue in the second quarter.
And the bank says it had a broad-based revenue contribution from diverse businesses, with particular strength in regional banking, commercial banking, mortgage banking, investment banking, asset-based lending, auto lending, student lending, debit card, merchant card, wealth management, securities brokerage retirement services and international operations.
Wells Fargo also says that the Wachovia integration is proceeding as expected, adding that business and revenue synergies are ahead of expectations; it is on track to realize annual run-rate savings of $5 billion upon full integration; and that it has completed the re-branding of Wachovia brokerage, capital markets and insurance businesses as Wells Fargo Advisors, Wells Fargo Securities and Wells Fargo Insurance Services, respectively.
“Our very strong growth in revenue, deposits and net income this quarter and the first half of this year demonstrates again that the combined Wells Fargo-Wachovia has significant power to generate capital internally,” explains President and CEO John Stumpf. “Thanks to the customer focus of our 282,000 talented team members, our revenue rose 28 percent (annualized) from first quarter as we set new cross-sell records and gained even more market share by satisfying all our customers’ financial needs and helping them succeed financially.
“At legacy Wells Fargo, 41 percent of our retail households have a cross-sell ratio over six, and one out of every four retail households now have at least eight products with us,” Stumpf shares. “Our Wachovia team members also contributed significantly to our results this quarter and the first half of the year, generating 39 percent of consolidated second quarter revenue. Wells Fargo Advisors (formerly Wachovia Securities) was ranked #1 by Forrester Research among all investment/ brokerage firms based on client perceptions for ‘doing what’s best for me and my household.’