Wells Fargo weathers slightly softer mortgage market

wells fargo net income q1 2013The numbers: Wells Fargo’s earnings (pdf) beat analyst expectations for the first quarter of 2013, with earnings per share of $0.92 (versus a predicted $0.88) and revenue of $21.3 billion (versus $21.6 billion estimate). Net income rose to $5.2 billion from $4.2 billion in the first quarter of 2012. (Wells is the largest US bank by stock market capitalization.)

The takeaway: A slightly softer US mortgage market—which Wells credits to a seasonal decline in the number of people purchasing and building new homes—doesn’t appear to have had a material impact on the bank’s results, but it is noticeable. Revenue actually fell slightly from the fourth quarter. Only time will tell if this really is a seasonal aberration.

What’s interesting: Wells Fargo’s CEO emphasized repeatedly in the earnings press release that regulators signed off on its capital plan–which includes a dividend of $0.30–without raising any objections. That’s both a proud statement and a dig at JP Morgan and Goldman Sachs, who had to go back and revise their capital plans after the Federal Reserve found “weaknesses” in their plans.

home our picks popular latest obsessions search