Daily News: April 14, 2014

Wells Fargo Posts Record Q1 Earnings

Wells Fargo reported record Q1/14 net income of $5.89 billion, or
$1.05 per common share, up 14% from $5.17 billion, or $0.92 per share, for first quarter 2013. Analysts polled by Thomson Reuters Financial has expected Q1/14 EPS of $0.93

Wells Fargo said the Q1/14 provision for credit losses of $325 million, was down $894 million or 73% from $1.22 billion for same quarter in 2013.

Chief Risk Officer Mike Loughlin said, “Credit losses (net charge-offs) were $825 million in Q1/14, compared with $1.4 billion in Q1/13, a 42% year-over-year improvement. The quarterly loss rate (annualized) was 0.41% with commercial losses of only 0.01% and consumer losses of 0.75%. Nonperforming assets declined by $840 million, or 17% (annualized) from last quarter. We released $500 million from the allowance for credit losses in the first quarter, reflecting improved credit performance. We continue to expect future reserve releases absent a significant deterioration in the economic environment.”

To read the entire Wells Fargo news release, click here.