Wells Fargo chairman and CEO John Stumpf said, "While the economic recovery remains uneven, we continued to meet our customers’ financial needs and benefited from signs of stabilization in the housing market."
Wells Fargo chief financial officer Tim Sloan said, "Our performance was strong across the board. In the quarter, we had record net income and earnings per share; expense reduction of approximately $600 million; an improved efficiency ratio; higher PTPP, ROA and ROE; core loan growth of $13.8 billion; and continued improvement in credit metrics."
For the latest quarter period, the US lender’s revenue was $21.3bn against net revenue of $21.6bn during the corresponding period a year ago.
The company reported that its net interest income grew by 1.4% to $11bn from first quarter net interest income of $1.9bn, and noninterest income declined by $496m from first quarter due to lower market sensitive revenue, such as a decline in trading gains.
Community banking segment reported net income of $2.5bn, with an increase of $187m, or 8%, from first quarter 2012, while its revenue for the second quarter declined $329m, or 2%, from first quarter 2012, mainly due to lower gains on deferred compensation plan investments.
Wholesale Banking reported net income rose by $13m to $1.9bn, from first quarter 2012, while the segment revenue stood at $6.1bn, up 1% from first quarter 2012 as strong growth across many businesses, including capital finance, commercial banking, commercial real estate, corporate banking, capital markets, international and real estate capital markets.
Wealth, Brokerage and Retirement segment net income was $343m, up by $47m from first quarter 2012, while revenue declined by 3% to $3bn from first quarter 2012 due to the impact of the equity market decline on deferred compensation plan investment results.
