Seeking Alpha

Wells Fargo slips after mixed earnings report

  • Net interest income of $10.7B unchanged from Q2, with net interest margin off 8 bps to 3.38%.
  • Noninterest income of $9.7B falls 8.5% from Q2, with mortgage banking income of $1.6B falling 43%. Residential mortgage originations of $80B fell from $112B. Noninterest expense falls $153M to $12.1B. The efficiency ratio of 59.1% is up from 57.3% in Q2.
  • Credit losses of just $975M vs. $2.4B a year ago.
  • Repurchases of 50.9M shares in Q3.
  • Tier 1 common equity ratio of 10.64%.
  • CC at 10 ET.
  • Q3 results, press release.
  • WFC -1.9% premarket.
Comments (4)
  • tomlos
    , contributor
    Comments (1099) | Send Message
     
    Hope this keeps wells down for a bit.. I would love to be able to average down here shortly.
    11 Oct 2013, 08:35 AM Reply Like
  • wetfeet
    , contributor
    Comments (14) | Send Message
     
    Meanwhile WFC's own analysts not understanding WFC's problems proceed to analyse other stocks today and downgrade them. What an incestuous bunch of character lacking plebeians for failing to tell the real story of WFC's failing grades...honesty would be good!
    11 Oct 2013, 09:29 AM Reply Like
  • Steve B. Wise
    , contributor
    Comments (122) | Send Message
     
    This does not bode well for the housing market overall given their dependence on mortgage origination and interest margin.
    11 Oct 2013, 09:29 AM Reply Like
  • mobyss
    , contributor
    Comments (1838) | Send Message
     
    Wells Fargo's mortgage origination business started collapsing about six months ago - this from an insider who helped train mortgage processing personnel. She had very steady work until March, then suddenly nothing.
    11 Oct 2013, 01:13 PM Reply Like
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