Industry News

Wells Fargo profits up 11%

Real estate loan activity grows

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Wells Fargo today reported record net income of $1.91 billion for the second quarter of 2005, or $1.12 per share, up 11 percent from the prior year's $1.71 billion, or $1 per share. A group of analysts polled by Thomson First Call had predicted profit of $1.13 per share. Revenue rose 6 percent to $7.87 billion, the company said. Wells Fargo also reported a return on equity of 19.8 percent. Average loans were up 11 percent from the prior year, at $295.6 billion, and average core deposits were up 6 percent, at $238.3 billion. "Thanks to the outstanding efforts of our more than 150,000 talented team members, this was another exceptional quarter of broad-based growth across our more than 80 businesses with continued double-digit growth in profit and earnings per share," said Chairman and CEO Dick Kovacevich in a statement. Kovacevich noted that during the first half of this year, the company opened 28 banking stores and added 22 mortgage stores, seven consumer finance stores and four...