Whoo-hoo, record profit at Wells Fargo (WFC). Too bad investors don’t seem to care, or don’t believe it.
Shares of Warren Buffett’s favourite bank are off over 5% pre-market, despite record net income of $3.17 billion and record revenue of $22.5 billion, helped in significant part by the acquisition of Wachovia. The company also says it expects to have a stress test cushion soon (remember, they’re one of the left-behinds that aren’t yet in position to repay TARP).
So why are investors concerned? Maybe it’s the result of credit charge-offs that continue to mount up aggressively, quarter over quarter. Net loan charge offs hit 2.11%, compared to 1.54% at the end of Q1. Commercial real estate charge-offs jumped significantly to 1.35% from .80%.
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