First half net profits of $3.22bn at Wells
Fargo’s retail focused Community Banking unit, are down 20.2% from
the first half of fiscal 2009.
Group-wide, Wells Fargo posted first half net
income of $5.61bn, down 10% year-on-year.
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On a positive note, Wells Fargo said credit
problems would diminish for the rest of fiscal 2010 and disbursed
$500 million from its accounts for future loan losses that it said
would no longer be required.
In the second quarter, Wells Fargo’s losses
from bad loans declined sharply, down 16% from the first quarter to
$4.5 billion.
Compared with a year ago, total lending
declined at Wells Fargo by 7.5%, with total assets down by 4.6% at
$1.22tr.
First half core deposits of $758.6m were flat
compared with a year ago but retail deposits of $533.4m were down
by 5.7%
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By GlobalDataAt the end of the first half, Wells Fargo’s
retail network of 6,445 units was down 3.3% or 223 outlets from
6,668 branches a year ago.
Customers’ increased use of the digital
channels resulted in 17.6m active online customers, up 10% (or
1.9m) from a year ago.
By the end of June, Wells Fargo’s active
mobile banking customers totalled 3.4m.
Other positive metrics included:
- net interest margin of 4.38% was up 11 basis points from a year
ago; - consumer checking accounts grew a net 7.4% from the end of the
first half of 2009; - record retail bank household cross-sell of Wells Fargo products
of 6.06 products per household, and - within the legacy Wachovia customer base, the cross-sell ratio
of Wachovia products continued to grow to 4.88 products per
household.
