Wells Fargo's earnings edge up as revenue rises

AP News
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Posted: Jan 14, 2015 9:17 AM
Wells Fargo's earnings edge up as revenue rises

NEW YORK (AP) — Wells Fargo & Co. reported a slightly higher fourth-quarter profit as the country's biggest mortgage lender generated more income from interest payments.

Quarterly net income rose to $5.38 billion from $5.37 billion a year earlier, the San Francisco-based bank said Wednesday. That's after taking out dividends for preferred stock. On a per-share basis, adjusted earnings worked out to $1.02.

The earnings results matched Wall Street's expectations, according to the data provider FactSet.

Revenue rose 4 percent to $21.44 billion in the three months ending in December, which narrowly topped forecasts. Analysts expected $21.24 billion in revenue, according to FactSet.

In a statement accompanying the results, John Shrewsberry, the bank's chief financial officer, said making more loans helped boost revenue. Total loans rose 5 percent to $862.55.

For all of 2014, Wells Fargo's adjusted earnings climbed 4 percent to $21.82 billion, while revenue crept up 1 percent to $84.35 billion.

Shares in Wells Fargo sank $1.15, or 2 percent, to $50.70, in off-hours trading. But Wells Fargo's stock has been on a tear, climbing 14 percent over the year. That's better than the Standard & Poor's 500 index's gain of 10 percent over the same stretch. Ranked by market value, Wells Fargo is now the biggest U.S. bank.