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Wells Fargo Posts Higher Revenues

The government’s refinancing initiatives seem to be on the right track, at least for banking giant Wells Fargo & Co. The San Francisco, CA-based company posted a net annual income of $2.38 billion Wednesday, an increase of 19 percent from last year’s records.

 

The rise has made Wells Fargo the nation’s largest mortgage lender, displacing the still-struggling Bank of America, although it still ranks fourth in terms of bank assets. The company is also well ahead in per-share profits, taking in 59 cents per share as opposed to the 55-cent profit predicted by analysts.

 

Wells Fargo is still recovering from a major loss in the fourth quarter of 2008, the company’s first shortfall in seven years. The announcement of increased profit and revenue on April 9 increased the bank’s shares by up to 32 percent.

 

Like most lenders, Wells Fargo has benefited from the refinancing surge caused by drastic drops in rates for 30-year mortgages. It also benefited from its 2006 acquisition of Wachovia Corp, one of the biggest sub-prime lenders brought down by the real estate crisis, by writing off most of its bad loans and preventing future losses.

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Earlier in Mortgage Servicers & Lender News:
Citigroup Joins Second Mortgage Modification Program
Seven Banks Shut Down; U.S. Total Now 37
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