Wells Fargo lived up to its promise, delivering over $3 billion in profits.
Net income rose 53 per cent, thanks in large part to government programs that lowered mortgage rates and encouraged home refinancings. The company made $3.05 billion for the quarter. Of that, $2.38 billion, or $0.56 per share, is applicable to common equity. Earlier this month, Wells had said it would make around $3 billion.
The bank said it had its best mortgage origination quarter since 2003, with $101 billion in new mortgages. Fees from those mortgages helped the company overcome $3.3 billion losses from unpaid loans.
Tangible common equity rose to $41.1 billion, up $4.5 billion from last quarter. That brings the TCE ratio to 3.28 per cent, up from 2.86 per cent at December 31, 2007.
Interestingly, Wells Fargo addressed the charges that banks have been hoarding TARP funds by touting how much it lent out recently. “More than $225 billion of credit extended to U.S. taxpayers since last October, nine times the amount received from U.S. taxpayers through the U.S. Treasury’s Capital Purchase Program investment,” the bank said.
Wells Fargo said it was taking advantage of the changes to accounting rules that allow it to avoid marking to market certain assets.
Business Insider Emails & Alerts
Site highlights each day to your inbox.