Wells Fargo reported record full-year 2014 net income of $23.1 Billion, up 5% from $21.9 billion in 2013. The bank said Q4/14 net income of $5.7 billion was up 2% from $5.6 billion in Q4/13.

The Q4/14 and full-year net interest margins of 3.04% and 3.11%, respectively were down from 3.27% and 3.40% for the same periods in 2013.

The bank showed overall commercial loan average balances for 2014 of $390.1 billion, up 7.4% from $363.0 billion a year earlier. The commercial loan portfolio yield of 3.40% was down 30 basis points from 3.70% a year earlier.

The bank noted continued strength in credit quality: net charge-offs of $735 million, down $228 million from Q4/13; net charge-off rate of 0.34% (annualized), down from 0.47%; nonaccrual loans down $2.8 billion, or 18% from Q4/13. The bank said it released $250 million from the allowance for credit losses in Q4, reflecting continued credit quality improvement.

Chief risk officer Mike Loughlin said, “Credit losses were $735 million in Q4/14, compared with $963 million in Q4/13, a 24% improvement. The quarterly loss rate (annualized) was 0.34% with commercial losses of 0.03% and consumer losses of 0.63%.”

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