Wells Fargo reported record net income of $3.9 billion, or $0.70 per share, for the second quarter of 2011, up from $3.1 billion, or $0.55 per share, a year ago and a slight increase from $3.8 billion, or $0.67 per share, for the first quarter of 2011.
The company’s latest earnings results beat analysts’ estimates by 1 cent
“Our business fundamentals were strong with increased revenues, loans and deposits, lower operating costs, improved credit quality and higher capital levels,” said Chairman and CEO John Stumpf in a statement.
“We’re right on track with our integration, having converted 2,215 Wachovia stores to date, including most recently one of our largest East Coast states, Florida,” Stumpf explained. “We continue to be focused on building and managing our diversified company for the long-term benefit of our team members, customers, shareholders and communities, and feel we are very well positioned to capture future growth opportunities.”
Revenue was about $20.39 billion, compared with $20.33 billion in first quarter 2011 and $21.39 billion in the same year-ago quarter. Analysts had estimated that Wells Fargo would have sales of $20.46 billion.
The Wealth, Brokerage and Retirement group – which includes Wells Fargo Advisors – had net income of $333 million in the June quarter, up from $270 million a year ago but down slightly from $339 in the March quarter.
Revenue for the group was $3.1 billion, up 8% from the year-ago period and down 2% from first quarter 2011 due to lower brokerage transaction revenue, according to the company. The year-over-year increase, it says, was driven by “higher asset-based revenues and higher securities gains in the brokerage business.”
Noninterest expenses declined 3% from first quarter on reduced personnel costs and increased 6% year over year “due to growth in personnel costs, primarily broker commissions driven by higher production levels.”