The Banking and Strategy Initiative

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Bank Earnings Season Q1 2014: Wells Fargo puts equity drag behind it

Earnings per share at the West Coast major finally crossed the elusive $1 mark, increasing another walloping 14% as the bank boasted a $5.9 Bln income in a weak mortgage quarter running into the 5th such report ont he trot

Revenues were down to $20.6 Bln, Deposits were barely up  but Return on Assets remained a high 1.57% making it worth the bank’s while to carry such a huge primary mortgage portfolio, Quarter end loans were up $28 Bln and core loans up $41 bln. Net charge offs came in under a $1 Billion

While JP morgan will be increasing dividends to $0.40 cents this year, the bank expects the CCAR appproval to allow $0.35 cents in the June quarter alone building on its investor base as it tries to coeme ahead of Wall street rivals

Efficiency ratios ( Cost to Income ) were stable finally at near 58%. Bank’s extraordinary NIMs are now down to 3.20%

Whiole sale Banking revenue and Income were down to $5.5 bln and $1.7 Bln down by 8% and 15%

Auto loan originatoions for Wells Fargo are likely to b e an interesting tipping point in the competition with Wall street banks up to $7.8 Bln for the quarter

 

 

 

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This entry was posted on April 11, 2014 by in Uncategorized.

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