Wells Fargo (WFC) Tops Q2 EPS by 1c

Wells Fargo (NYSE: WFC) reported Q2 EPS of $1.03, $0.01 better than the analyst estimate of $1.02. Revenue was $21.3 billion, with consensus estimates at $21.7 billion.

Highlights:

• Strong growth in average loans and deposits:
  • Total average loans of $870.4 billion, up $39.4 billion, or 5 percent, from second quarter 2014
    • Quarter-end loans of $888.5 billion, up $59.5 billion, or 7 percent
      • Quarter-end core loans1 of $832.1 billion, up $68.5 billion, or 9 percent
      • Included $11.5 billion from GE Capital loan purchase and financing transaction
  • Total average deposits of $1.2 trillion, up $83.8 billion, or 8 percent

• Continued strength in credit quality:
  • Net charge-offs of $650 million, down $67 million from second quarter 2014
    • Net charge-off rate of 0.30 percent (annualized), down from 0.35 percent
  • Nonaccrual loans down $1.5 billion, or 11 percent
  • $350 million reserve release2

• Maintained strong capital levels3 and continued share repurchases:
  • Common Equity Tier 1 ratio under Basel III (fully phased-in) of 10.5 percent
  • Period-end common shares outstanding down 17.7 million from first quarter 2015
  • Increased quarterly common stock dividend to $0.375 per share from $0.35

For earnings history and earnings-related data on Wells Fargo (WFC) click here.

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