Wells Fargo & Co (WFC). reported net income on Friday morning of $5.7 billion, or $1.01 per share, for the second quarter, up from $5.5 billion, or $0.98 per share, a year ago, in line with analysts’ expectations.
Analysts polled by Thomson Reuters expected per-share earnings of $1.01 on revenue of $20.84 billion.
For the first six months of 2014, Wells Fargo reported the net income was $11.6 billion, or $2.06 per share, up from $10.7 billion, or $1.90 per share, for the same period in 2013.
“Our results also reflected strong credit quality driven by an improved economy, especially the housing market, and our continued risk discipline,” said Chairman and CEO John Stumpf in a statement. “We are committed to both maintaining strong capital levels and returning more capital to our shareholders.”
While profit is up nearly 4% from last year, revenue for the second quarter fell slightly compared to the second quarter 2013, to $21.1 billion from $21.4 billion a year ago. But this quarter’s revenue is up from $20.6 billion in first quarter 2014.
Chief Financial Officer John Shrewsberry added in a statement, “The primary drivers of Wells Fargo’s business remained strong in the second quarter, with broad-based loan growth, increased deposit balances, and improved credit quality. Revenue increased linked quarter as the company grew both net interest income and noninterest income, a reflection of Wells Fargo’s diversified business model. These solid fundamental business results led to an increase in pre-tax income linked quarter. Net income was down as the company’s effective tax rate was lower in the first quarter due to a $423 million discrete tax benefit.”
Wealth, Brokerage and Retirement
Wells Fargo’s Wealth, Brokerage and Retirement unit reported net income of $544 million for the second quarter, a 25% increase from a year ago and a 15% increase from the first quarter.