In the first quarter of 2010, Wells Fargo
earned $2.5 billion, or $0.45 per common share, according to the bank's
earnings report
released Wednesday. In its report, Wells Fargo said all business segments contributed to the
strong earnings results, with net income from community banking of $1.5
billion, wholesale banking income of $1.2 billion, and brokerage and
retirement net income of $282 million. The San Francisco-based bank's revenue of $21.4 billion was up 2 percent
from the first quarter of 2009, and pre-tax pre-provision profit (PTPP) was
$9.3 billion, marking the fifth consecutive quarter PTPP exceeded $9
billion. Wells Fargo said is believes credit has "turned the corner," as it supplied
more than $128 billion in credit during the quarter, including mortgage
originations and consumer and commercial loans and lines of credit. At the end of the first quarter, the bank reported $125 billion in total
home mortgage applications, including $76 billion in actual originations and
an application pipeline of $59 billion. As of March 31, 2010, Wells Fargo's owned residential servicing
portfolio totaled $1.8 trillion. Citing data from Inside Mortgage Finance, Wells Fargo said the delinquency
and foreclosure rates of loans included in its mortgage portfolio were less
than three-fourths of the industry average. According to the bank's earnings
report, less than 2 percent of loans secured by owner-occupied homes and
serviced by Wells Fargo proceeded to foreclosure sales in the past 12
months. The low rates of delinquency and foreclosure were the result of the bank's
continued efforts to help homeowners
stay in their homes. Between January 2009
and March 31, 2010, Wells Fargo had 523,336 active and completed trail
modifications on its books. Of these, 144,932 were Home Affordable
Modification Program (HAMP) active and completed modifications, including
30,014 permanent HAMP modifications. And nearly 380,000 were proprietary
trial and completed modifications. In addition to completing HAMP and proprietary modifications, Wells Fargo
recently announced its participation
in the Second Lien Modification Program under HAMP to help
struggling homeowners with a reduction in their home equity loan payments.
In order to make these programs successful, the bank has added more than
10,000 staff focused on home preservation since January 2009. By the end of
the first quarter of this year, Wells Fargo had a total of 17,400 staff
focused directly on these efforts. The bank's allowance for credit losses increased to $25.7 billion during the
quarter, primarily due to a $693 million addition to allowance upon adoption
of FAS 167. In addition, Wells Fargo provided $402 million to mortgage
repurchase reserve.
earned $2.5 billion, or $0.45 per common share, according to the bank's
earnings report
released Wednesday. In its report, Wells Fargo said all business segments contributed to the
strong earnings results, with net income from community banking of $1.5
billion, wholesale banking income of $1.2 billion, and brokerage and
retirement net income of $282 million. The San Francisco-based bank's revenue of $21.4 billion was up 2 percent
from the first quarter of 2009, and pre-tax pre-provision profit (PTPP) was
$9.3 billion, marking the fifth consecutive quarter PTPP exceeded $9
billion. Wells Fargo said is believes credit has "turned the corner," as it supplied
more than $128 billion in credit during the quarter, including mortgage
originations and consumer and commercial loans and lines of credit. At the end of the first quarter, the bank reported $125 billion in total
home mortgage applications, including $76 billion in actual originations and
an application pipeline of $59 billion. As of March 31, 2010, Wells Fargo's owned residential servicing
portfolio totaled $1.8 trillion. Citing data from Inside Mortgage Finance, Wells Fargo said the delinquency
and foreclosure rates of loans included in its mortgage portfolio were less
than three-fourths of the industry average. According to the bank's earnings
report, less than 2 percent of loans secured by owner-occupied homes and
serviced by Wells Fargo proceeded to foreclosure sales in the past 12
months. The low rates of delinquency and foreclosure were the result of the bank's
continued efforts to help homeowners
stay in their homes. Between January 2009
and March 31, 2010, Wells Fargo had 523,336 active and completed trail
modifications on its books. Of these, 144,932 were Home Affordable
Modification Program (HAMP) active and completed modifications, including
30,014 permanent HAMP modifications. And nearly 380,000 were proprietary
trial and completed modifications. In addition to completing HAMP and proprietary modifications, Wells Fargo
recently announced its participation
in the Second Lien Modification Program under HAMP to help
struggling homeowners with a reduction in their home equity loan payments.
In order to make these programs successful, the bank has added more than
10,000 staff focused on home preservation since January 2009. By the end of
the first quarter of this year, Wells Fargo had a total of 17,400 staff
focused directly on these efforts. The bank's allowance for credit losses increased to $25.7 billion during the
quarter, primarily due to a $693 million addition to allowance upon adoption
of FAS 167. In addition, Wells Fargo provided $402 million to mortgage
repurchase reserve.
via Ping.fm
No comments:
Post a Comment