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Wells Fargo & Co. (WFC)

  • Jul. 12, 2013, 11:08 AM
    Ears of specialty mortgage servicers (OCN, NSM, NRZ, WAC) perk up after Wells Fargo (WFC +1.7%) management - responding to an earnings call question - says it's exploring a sale of MSRs sometime in H2.
    | Jul. 12, 2013, 11:08 AM | Comment!
  • Jul. 12, 2013, 10:30 AM
    "We do not manage Wells Fargo for a specific rate environment," says CEO John Stump (WFC +1.8%) on the earnings call (presentation slides). Noting the current rate environment is quite different than 90 days ago, he says the bank is well-prepared and knows some of its businesses will do better, some (mortgages) worse. Mortgage originations actually rose in Q2, but margins slid (gain on sale rev. fell $71M, slide #10) and management expects them to slide further.
    | Jul. 12, 2013, 10:30 AM | 1 Comment
  • Jul. 12, 2013, 8:19 AM
    More on Wells Fargo (WFC) Q2 earnings: Net interest margin of 3.46% vs. 3.48% in Q1, 3.91% a year ago. Mortgage originations of $112B, up from $109B in Q1. Application pipeline drops to $63B at Q2 end vs. $74B for Q1. "Gain on sale margins declined as expected." Net charge-offs of $1.2B, off $1B from a year ago and at 0.58% the lowest since Q2 2006. $500M (about $0.09/share) reserve release. Purchased 26.7M shares in Q2 plus an additional 13M shares through a transaction expected to settle in Q3. Tier 1 Basel III common equity ratio of 8.54%. Book value/share of $28.26. CC at 10 ET. Shares +0.2% premarket. (PR)
    | Jul. 12, 2013, 8:19 AM | Comment!
  • Jul. 12, 2013, 8:02 AM
    Wells Fargo (WFC): Q2 EPS of $0.98 beats by $0.04. Revenue of $21.38B beats by $0.17B.
    | Jul. 12, 2013, 8:02 AM | 1 Comment
  • Jul. 12, 2013, 4:31 AM
    Democratic Senator Elizabeth Warren, Republican counterpart John McCain and two others have introduced the "21st Century Glass-Steagall Act," a reprise of the 1930s law that was repealed in 1999 and that separated traditional banking such as home loans and checking accounts from riskier pursuits like investment banking and trading derivatives. Slogans such as "banking should be boring" and keep "keep the gamblers out of our banks" have a populist ring, but the legislation will face many hurdles.
    | Jul. 12, 2013, 4:31 AM | 74 Comments
  • Jul. 12, 2013, 12:05 AM
    Notable earnings before Friday’s open: INFY, JPM, WFC
    | Jul. 12, 2013, 12:05 AM | Comment!
  • Jul. 11, 2013, 5:30 PM
    Notable earnings before Friday’s open: INFY, JPM, WFC
    | Jul. 11, 2013, 5:30 PM | Comment!
  • Jul. 10, 2013, 2:34 PM
    More on Sandler's Wells Fargo (WFC -1.6%) downgrade (previous): It's mostly a valuation call following the recent run, with the team concerned focus will soon shift from the steepening yield curve to the various headwinds still facing banks - weak loan growth, the end of the refi boom, and continuing regulatory scrutiny. Like KBW, Sandler notes a steeper yield curve is no panacea to earnings and the real leverage comes from a higher short end, which remains years away.
    | Jul. 10, 2013, 2:34 PM | 2 Comments
  • Jul. 10, 2013, 7:56 AM
    Wells Fargo (WFC) suffers its 2nd downgrade in two days, with Sandler O'Neill cutting to Hold from Buy (yesterday). The moves come ahead of Friday's earnings report which is expected - among other things - to at least partly reflect the backup in interest rates and halt to the refinance boom. Shares -0.8% premarket.
    | Jul. 10, 2013, 7:56 AM | 1 Comment
  • Jul. 9, 2013, 10:47 AM
    The FDIC looks set to approve dual standards for bank leverage capital ratios of 5% for the holding companies and 6% for the banking units. The 3% minimum set by Basel "would not have appreciably mitigated the growth in leverage" prior to the financial crisis, says FDIC head Martin Gruenberg. The changes will apply to those deemed globally important: JPM, C, WFC, GS, BAC, MS, STT, BK. Set your calendars: The banks have until Jan. 1, 2018 to comply.
    | Jul. 9, 2013, 10:47 AM | 9 Comments
  • Jul. 9, 2013, 8:08 AM
    Wells Fargo (WFC) is downgraded to Neutral from Positive at Susquehanna. No details are yet available, but the move comes just 4 days ahead of Friday's Q2 earnings report. More than the other TBTFs, Wells has benefitted from the now-halted refinance boom.
    | Jul. 9, 2013, 8:08 AM | Comment!
  • Jul. 8, 2013, 10:48 AM
    Regional bank stocks (KRE +0.2%) are no longer cheap, says Citi's Keith Horowitz, who sees very little impact on earnings from higher rates in the short term and a forward curve already pricing in 100 bps of rate hikes in 2015. His preferred plays going into earnings are BB&T (BBT), M&T (MTB), and Wells Fargo (WFC), with just BB&T being rated a Buy thanks to its underperformance since failing the Fed stress test. An approval this summer of the resubmitted plan could prove a catalyst for the stock.
    | Jul. 8, 2013, 10:48 AM | 1 Comment
  • Jul. 3, 2013, 1:03 PM
    The results of the first-ever "mid-cycle" stress tests of the big banks are due Friday. Unlike the Fed exams completed in March, these tests are self-administered and based on scenarios of the banks' own choosing. Will any fail themselves? Worth watching are BB&T (BBT) and Ally Financial - both of whom failed the Fed test. Others required to submit: GS, JPM, BAC, BK, AXP, COF, C, FITB, MS, PNC, RF, STT, STI, USB, WFC.
    | Jul. 3, 2013, 1:03 PM | 8 Comments
  • Jul. 3, 2013, 7:39 AM
    More on MBA mortgage applications: Refinancing apps dropped 16% last week to a 2-year low while new purchase apps fell 3%. The 30-year fixed mortgage rate climbed to 4.58%, the highest in 2 years, and up from 3.59% in May. Banks like Wells Fargo (WFC) - which rode to refi boom to massive profits - will no longer be doing so, but it could be priced in at this point.
    | Jul. 3, 2013, 7:39 AM | 6 Comments
  • Jul. 2, 2013, 11:35 AM
    JPMorgan (JPM), PNC Financial, and U.S. Bancorp (USB) all have the earnings power to have grown book value in Q2 despite price declines in their securities portfolios due to rising interest rates, says Credit Suisse. Wells Fargo (WFC) could take the biggest hit, says the team, due to the relatively long 3.5 year duration of its portfolio.
    | Jul. 2, 2013, 11:35 AM | Comment!
  • Jul. 2, 2013, 8:49 AM
    Wells Fargo (WFC) is downgraded to Hold by KBW's Chris Mutascio on valuation concerns given the rise in long-term rates. Bank earnings, he says, are far more levered to short rates (which have remained flat) than the long end. Higher rates may give some benefit to spread income, but this is offset by lower mortgage banking revenue as refinances slow. Shares -0.5% premarket.
    | Jul. 2, 2013, 8:49 AM | 1 Comment
Company Description
Wells Fargo & Co is a diversified financial services company. It provides retail, corporate and commercial banking services through banking stores and offices, the internet and other distribution channels to individuals, businesses and institutions.
Sector: Financial
Country: United States