Industry News

Wells Fargo posts record profits

Consumer and business lending helps bank earn $2.19 billion profit

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Wells Fargo & Co. saw third-quarter profits rise 11 percent to $2.19 billion, despite a 36 percent decline in revenue from the bank's home mortgage division. Third quarter earnings of 64 cents per share were driven by increased consumer and business lending, the company said. At $923 million, revenue generated by the Wells Fargo Home Mortgage division was down $502 million from $1.4 billion in the third quarter of 2005. Excluding the Home Mortgage division, Wells Fargo's combined revenue was up 13 percent from third quarter 2005. Businesses with double-digit, year-over-year revenue growth included commercial real estate, regional banking, merchant card services, credit cards, debit cards, corporate trust, asset-based lending, commercial banking and insurance. Although the $104 billion in mortgage originations for the quarter was $12 billion less than the previous quarter, it was about the same as the $103 billion recorded in the third quarter of 2005 -- a quarter in which long-term...