Home mortgage revenue drops for Wells Fargo

Wells Fargo today reported home mortgage revenue was $0.9 billion in the third quarter, a 40 percent decline from $1.5 billion in the third quarter of 2003. That was due primarily to a $93 billion, or 58 percent, decline in mortgage originations driven by the increase in long-term rates from last year's record lows, according to a company statement. Home mortgage revenue declined almost $400 million on a linked-quarter basis due primarily to the decline in originations from the second quarter 2004 "mini-refi" wave.

The company's total revenue of $7.3 billion for the quarter was flat from a year ago and down $108 million on a linked-quarter basis, reflecting lower revenue from home mortgages. Combined revenue of all the businesses other than home mortgage grew 11 percent from $5.8 billion in the third quarter of 2003 to $6.4 billion in third quarter this year.

The company reported third-quarter diluted earnings per share of $1.02, up 11 percent from the third quarter of 2003.

Net income was $1.75 billion, up 12 percent from $1.56 billion a year ago. For the first nine months of 2004, net income was $5.23 billion, up 14 percent from the first nine months of 2003. Diluted earnings per share were $3.05 for the first nine months, a 13 percent increase from the same period a year ago.

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