By Saabira Chaudhuri
Wells Fargo & Co.'s fourth-quarter profit rose as revenue
also climbed.
The bank reported a profit of $5.71 billion, compared with a
year-earlier profit of $5.61 billion. On a per-share basis, Wells
Fargo's profit was $1.02 versus $1. Analysts polled by Thomson
Reuters had expected earnings of $1.02 a share.
Revenue rose to $21.4 billion. Analysts had expected $21.23
billion.
Wells Fargo, run by Chairman and CEO John Stumpf, has been a
stock-market favorite among big banks in recent years. The most
valuable U.S. bank by market value, Wells Fargo rode the recovery
in the U.S. economy to 17 straight quarters of year-on-year profit
growth through the third quarter of 2014, according to FactSet.
The lender's mortgage results will remain in focus, with
investors parsing the lender's results for any signs that the
housing market may have turned a corner. Lending profitability is
another key area of concern. The San Francisco lender's so-called
net interest margin--the difference between what it makes on loans
and investments and what it pays out on deposits--has been squeezed
in recent periods, disappointing investors, despite an uptick in
loan growth.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
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