Wells Fargo Beats Earnings Estimates

Wells Fargo BankJustin Sullivan/Getty ImagesA sign is posted in front of a Wells Fargo Bank branch in Oakland, California.

Wells Fargo just released its third-quarter results.

Wells Fargo posted earnings per share of 99 cents per share.

Third quarter revenue came in at $US20.5 billion.

On average, analysts expected the bank to report adjusted earnings per share of 97 cents on revenue of $US21.02 billion, according to data compiled by Bloomberg.

From the release:

SAN FRANCISCO — Wells Fargo & Company (NYSE:WFC) reported record net income of $US5.6 billion, or

$0.99 per diluted common share, for third quarter 2013, up from $US4.9 billion, or $US0.88 per share, for third

quarter 2012, and up from $US5.5 billion, or $US0.98 per share, for second quarter 2013. For the first nine

months of 2013, net income was a record $US16.3 billion, or $US2.89 per share, compared with $US13.8 billion, or

$2.45 per share, for the same period in 2012. “Wells Fargo continued to demonstrate strong and consistent financial performance in the third quarter,” said Chairman and CEO John Stumpf. “As our economy continues to transition to higher interest rates, our diversified business model and strong risk discipline contributed to record earnings per share along with continued strength in return on assets, return on equity and capital. The improvement in the housing market has been beneficial to our customers and significantly contributed to our broad-based credit improvement in the quarter. We also deepened relationships, resulting in increases in cross-sell across the Company. As we look forward, we remain well positioned to meet the needs of our customers and to perform for our shareholders.”

Chief Financial Officer Tim Sloan said, “This was a solid quarter for Wells Fargo. As expected, mortgage banking revenue was lower in the quarter as the recent increases in interest rates reduced refinance volume, but this impact was partially offset by improved credit and lower expenses. Year-over-year, we had strong loan growth, double-digit increases in noninterest income across many of our businesses and continued to build capital and return more to shareholders through dividends and share buybacks.”

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.