Wells Fargo took time in Q2 to shut down over 3000 retail store format mortgage shops around Minnesots and states nearby according to news we read. Given that each store counted 5-10 staff and that total retail volumes contributred by the stores was less than 10% of Wells Fargo’s retail business, that is going to be one big benefit from the Wachovia merger for the bank.
With Morgan Stanley unlikely to be able to follow good performances in lean season of trading, Wells Fargo will be one of the few to benefit from the markets hunger pangs for good financials stocks this season. Wells Fargo managed a $21.4 billion revenue again this quarter, with very little downside and published earnings of $0.55 maintaining earlier years $0.58 despite a higher shares outstanding (17% higher from last year) Net Charge offs are down to 2.33% from 2.71% in Q1 of this year.
Wells Fargo earnings call is listing to all commercial banking and merchant services in banking to more than 80 businesses where it has done well in revenues linked to sales including asset based lending, brokerage services and others. Client Assets grew 6% and Corp Assets 7% Corp Brokerage up 5% Institutional retirement assets grew 10%. The bank also made a cool $1 billion from reduced loan loss provisions of $3.99bn
[Reuters Insider is turning out to be an expensive resource hungry service esp with bandwidth requirements for the portal, though it is unlikely to be able to convert its rich video on screen experience into significant revenues with the challeged pricing model depending on large retail prices and even larger CDP discounts]
Related Reading:
Investment Banker in salesclothes
[...] This post was mentioned on Twitter by Amit 'zyaada' Mittal, Advantage Research, Advantage Research, Give 'zyaada' Mittal, Amit 'zyaada' Mittal and others. Amit 'zyaada' Mittal said: A great comeback in dull season >>> Bank Results Season : Wells Fargo ain’t going anywhere http://ping.fm/ABXcW [...]