Wells Fargo posts quarterly earnings higher than the costs of credit facility

April 20, 2011, 8: 09 pm EDT by Dakin Campbell

April 20 (Bloomberg) — Wells Fargo & Co., the largest of the U.S. home lender, said profit in the first quarter rose by 48 percent, beating analysts estimates, drop charges for soured real estate and loans to businesses.

Net earnings increased $ 3.76 billion dollars, or 67 cents a diluted share, from $ 2.55 billion, or 45 cents, a year earlier, the San Francisco-based Bank said today in a statement. Fourteen analysts surveyed by Bloomberg estimated profit not adjusted from 66 cents per share. "" It is clear that the credit has come to better in all areas, said Andrew Marquardt, analyst of Evercore Partners Inc., New York, until the results were announced. "" " "Credit costs are improved both in terms of charge-offs and releases reserve."Chairperson and Chief Executive John Stumpf, 57, is based on releases of reserve as income obtained under pressure from weak loan demand and new financial rules that CAP the fees banks can charge bank overdrafts and debit card transactions. Limits on the debit card fees charged to merchants "no sense" and distort the free market economy, Stumpf wrote in his annual letter to shareholders, published in March.Total houses a mortgage originations to four family declines 32 per cent to 1.07 trillion $ 1.57 trillion in 2010 in 2011According to forecasts, published by Mortgage Bankers Association.Wells Fargo Corporation, fourth rank by the United States assets, decreased by 3% this year to the New York Stock Exchange, closing at $30.07 yesterday, compared with a decrease of 3.3% for 24 KBW Bank index - business. Its majority shareholder is Berkshire Hathaway Inc. of Warren Buffett, who held the 342,6 million shares, or 6.5 per cent at year end.Four more major BanksWells Fargo is the last of the four major U.S. commercial banks to announce the results of the first quarter. The largest lender U.S., Bank of America Corp., said on April 15 in the first quarter profit fell 36% to $ 2.05 billion.JPMorgan Chase & Co., the second largest bank by assets, said the 13 April income net increased from 67% to $ 5.56 billion. On 18 April, Citigroup Inc., the third great, said that net income fell from 32% to $ 3 billion. JPMorgan and Citigroup are based in New York, while Bank of America is based in Charlotte, North Carolina.All four banks were among the 14 mortgage services which will be forced to pay the owners of the losses on loans that have been poorly used in the wake of real estate or seizures collapseunder the terms of an agreement with banking regulators announced last week. JPMorgan said it can to 1.1 billion in costs related to agreements and require an additional 3 000 employees, according to a transcript of the Conference call.Dividend, BuybackLast months, Wells Fargo announced a special dividend in the first quarter to 7 cents per share, boosting pay 12 cents, after receiving the approval of the Federal Reserve. It was the first increase in the payment as the company slashed the dividend to 5 cents per share from 34 cents in May 2009. The Bank has said that he could redeem an additional $ 200 million shares.Wells Fargo is in the last year of the integration of Wachovia Corp., purchased the lender based in Charlotte, North Carolina in the credit crisis. It reported more than 25 billion dollars in profits after buying Wachovia, once the fourth U.S. bank.

-Editors: Dan Reichl, Rick Green

To contact the reporter on this story: Dakin Campbell in San Francisco at dcampbell27@bloomberg.net.

To contact the editor responsible for this story: David Scheer in dscheer@bloomberg.net.

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