Friday, January 18, 2013

Wells Fargo Earnings Review: Raises the Bar Higher!

Wells Fargo reported QE December 2012 financial results on January 11

Wells Fargo reported an excellent quarter and raises the bar higher. CEO John Stumpf has continued to improve both financial performance and position. Both capital and return on assets are strong. Risk management appears excellent. Earnings per share of $0.91 is yet another all-time high.

At QE 12-31-12, I have rated Wells Fargo an "A-" on a scale of A+ to G-. This is no change in the rating from the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.

Wells Fargo is easily the preeminent USA bank with assets greater than $1 trillion, now at $1.42 trillion. The other banks in the Trillion Dollar Assets Club are JPMorgan, Bank of America, and Citigroup.

"2012 was an outstanding year for Wells Fargo,” said Chairman and CEO John Stumpf. “We saw the continued benefits of our diversified business model and reported record full year and fourth quarter earnings, robust deposit and solid loan growth, and strong performance across our business units. The Company’s success is due to our more than 265,000 team members who remained focused on our customers and on our vision to satisfy all of our customers’ financial needs."

"This time last year, I said we would benefit from the many opportunities we saw for 2012 – and we did just that. From growing revenue, making strategic acquisitions and achieving efficiency improvements, I am extremely pleased with our 2012 performance. We also returned more capital to our shareholders through common stock dividends and common stock repurchases. We are very well positioned for and look forward to 2013, as Wells Fargo continues to work hard to contribute to a growing U.S. economy by doing what we do best: helping customers succeed financially."


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