Finjitsu Research - Associated Analysts
CHICAGO, IL - Jan. 11, 2013
Current Perspective on Wells Fargo & Company NYSE:WFC
Excluding net capital gains, a one time charge, and a one time tax benefit, operating EPS was $0.81, slightly below our estimate (consensus was $0.89, although, consensus may include capital gains). Another drop in net interest margins--now down (35) basis points over the past two quarters--was largely responsible for the shortfall vs. our estimate. Non-NIM, non-credit related operating trends were strongly positive in the quarter.
Previous Perspective on Wells Fargo & Company NYSE:WFC
As WFC's opportunities to reduce high-cost liabilities, such as redeeming trust preferreds, have largely been exploited, relentlessly low interest rates available on investment securities (and some loans) are likely to keep driving WFC's net interest margins lower in 2013. WFC now is engaged in a robust effort to drive its expense ratios lower, despite modest revenue growth.
For more information on this brief please visit: Wells Fargo & Company WFC | Quick Take on the Quarter.
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