Wachovia Posts Q3 13% Profit Increase But Revenue Disappoints

Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

Profit at Wachovia Increases 13%, but Revenue Falls Short [New York Times]

Summary: Rising loan demand contributed to Wachovia's just-announced 13% profit in Q3, but a shrinking net interest margin (3.03% vs. Q2's 3.18%) has taken its toll on revenue. Shares dropped 2.2% on the news and dampened prices throughout the sector. Profit reached $1.19 a share, meeting expectations, but the 5% revenue increase to $7.04B fell short of the $7.26B forecast. Results do not include the bank's $24.2B purchase on Oct. 1 of Golden West Financial.
Related links: Wachovia: Bigger and Still Sound • Interest-Rate Pressure Damps Wachovia's Profit • Wachovia's Imprudent Takeover of Golden West
Potentially impacted stocks and ETFs: Wachovia Corp. (WB) • SunTrust Banks (STI) • iShares Dow Jones US Regional Banks Index Fund (IAT) • iShares Dow Jones US Financial Sector Index Fund (IYF) • iShares Dow Jones US Financial Services Index Fund (IYG) • Regional Bank HOLDRs Trust (RKH) • Vanguard Financials ETF (VFH) • Select Sector SPDR Financial (XLF)