The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Bank Results Season: Wells Fargo trudges to a $84 Bln goalpost but with a ROTA of 1.5%

WFC MortgagesThe Bank maintained its lead in Return on Assets with some deft Expense control apparently and is due to get into Executive webcasts for the Analysts in a half hour as the sun comes up over the West Coast.  The Bank’s Net Income for the quarter is a $5.6 Bln and despite returning $11 Bln to shareholers including larger buybacks and dividends, earnings are an improved but lowish $1 for the Quarter, not enough to keep it in the big league.

The Bank earned $21.878 Bln for the year and Period end Deposits and Loans ended at $825 Bln and $980 Bln. Average Deposits are $1060 Bln. Consumer Banking Loans and Deposits for Comparisons with Chase average to $502 Bln and $620 Bln, barely breasting ahead even as BofA returns in full swing to the ring this year.

The Earnings per share are still a good way below $4 or $4.35 for JP Morgan but RoE has improved a complete point to just under 14%

Fee Income share has trudged down  to an overall 48%, a good 13% of which comes from Deposit Service Charges, 10% from Card Income and Merchant charges (2%) while Brokerage advisory and commissions are another 22%. Share of Mortgage Income Fees and Charges has settled at 16% and that of Trust investments at 36% for 2013

NIMs are down 12 bps but still a much better 3.26% for the year than for the other Top 4 Banks. Total Loan yields have tracked down from 4.57% last year to 4.35%  Single Unit Mortgage stock is u $8.6 Bln to $258 Bln (First mortgages)

Total NII for the four quarters is $43.596 Bln with $11 Bln in the latest quarter

Q4 Non interest income is $2 Bln from Trust and $1.57 bln from mortgages of the total $9.9 Bln.

Mortgage Applications are down t o $65 Bln from $152 Bln at the end of last year with originations of $50 Bln comparing well with JP Morgans $30 Bln odd, bringing down the gap with the mortgage leader as Refi business closed out and mortgages settle back (nearly) over 5%

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This entry was posted on January 15, 2014 by in Amitonomics, Banking, housing.


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