Wells Fargo projects record first quarter profits

Another head fake ? LOL. Come on man. Your SP resistance lines got blown apart. Your call for the demise of the stock market has been about as wrong as one can be. Accept that you were wrong and move on. For such a big shot in the private equity world you sure do spend a lot of time following day to day moves in the stock market.

Movement you can trade? Has been a great trading environment for the last 2 years.

Make sure to have some cheese with that whine today at lunch.

 

WFC,JPM will make it through. C,BAC I would be carefull. Look at C today.

 

Mark to Fantasy definitely played a role here.

But profits are definitely not due to some kind of government/regulator/accounting conspiracy to "trick" investors like some people keep suggesting lol

Accept the fact that banks are improving and the financial system as a whole will not cease to exist.

 

Strong Business Momentum at Wells Fargo and Wachovia, Including $190 Billion in Mortgage Applications

SAN FRANCISCO–(BUSINESS WIRE)–Wells Fargo & Company (NYSE:WFC) said today it expects to report record net income of approximately $3 billion for first quarter 2009, or approximately $0.55 per common share after preferred dividends, including $372 million in dividends paid to U.S. taxpayers on the U.S. Treasury’s Capital Purchase Program investment. The Company will report its financial results on April 22, 2009.

* Total revenue of $20 billion, including another quarter of double-digit revenue growth at legacy Wells Fargo, up an estimated 16 percent;
* Strong operating results at legacy Wachovia;
* Solid operating margins with consolidated net interest margin of approximately 4.1 percent and efficiency ratio of approximately 56 percent;
* Combined net charge-offs of $3.3 billion, compared with fourth quarter net charge-offs totaling $2.8 billion at legacy Wells Fargo and $3.3 billion at legacy Wachovia;
* Provision expense of approximately $4.6 billion, including $1.3 billion credit reserve build, bringing the allowance for credit losses to $23 billion; and
* Pre-tax pre-provision profit of approximately $9.2 billion.

“Business momentum in the quarter reflected strength in our traditional banking businesses, strong capital markets activities, and exceptionally strong mortgage banking results — $100 billion in mortgage originations, with a 41 percent increase in the unclosed application pipeline to $100 billion at quarter end, an indication of strong second quarter mortgage originations,” said Chief Financial Officer Howard Atkins.

Wells Fargo continued to extend significant amounts of credit to U.S. taxpayers in first quarter 2009. “Our commitment to serving credit-worthy consumer, small business and commercial customers has continued throughout the credit crisis,” said Atkins, “and, in fact, accelerated during the quarter and we’re providing significant support to U.S. homeowners.” Highlights include:

* Approximately $175 billion in loan commitments, mortgage originations and mortgage securities purchases in the first quarter;
* $190 billion in mortgage applications for over 800,000 homeowners in the first quarter, up 64 percent from prior quarter, including record $83 billion applications in March;
* Funded over $100 billion in mortgage loans, helping over 450,000 homeowners either purchase a home or lower their payments through refinancing;
* Over 150,000 mortgage solutions in the first quarter to help homeowners remain in their homes; and
* More than $225 billion of credit extended to U.S. taxpayers since early last October, nine times the amount received from U.S. taxpayers through the U.S. Treasury’s Capital Purchase Program investment.

Wachovia acquisition exceeding expectations. “Wachovia’s outstanding franchise has proven to be everything we thought it would be when we announced this acquisition, and the financial contribution from Wachovia exceeded our expectations in the first quarter,” said Stumpf. Highlights include:

* Strong revenue contribution from legacy Wachovia, about 40 percent of combined revenue;
* Loan, deposit and client asset business activity has resumed and customers are returning; positive consumer and small business checking account growth;
* Reconfirming $5 billion of expected annual merger-related expense savings, which will begin emerging in the second quarter and are expected to be fully realized upon completion of the integration; and
* Purchase accounting adjustments overall remain in line with December 31, 2008, marks.

Tangible common equity (TCE) ratio expected to increase in first quarter. Tangible common equity is expected to be above 3.1 percent of tangible assets at March 31, 2009. The 85 percent reduction in the Company’s common stock dividend from $0.34 per share to $0.05 per share announced on March 6, 2009, will benefit retained earnings by about $1.25 billion in additional common equity per quarter, the equivalent of about 10 basis points of TCE per quarter, beginning in the second quarter.

 

Strong sell at the close of today´s session...

 

Accept that the game is rigged. It always has been. Accept that and make money.

 

Does anyone have info on their non-perfoming assets growth compared to provisions(coverage ratio)?

 

Consumers are being squeezed at every corner. Rates, home prices, taxes.

This is not good for growth going forward. Did we overshoot on the down side, yes. Were we due for a snap back, yes.

I look for a side ways pattern bewteen Dow 7000-9000 for many years. It take time to heal.

 

Forgot this chart showing the inverse head and shoulder break out.

I would buy pull backs in WFC

 

And your long FAZ position at $29.60 is getting CRUSHED!!!

Nice job.
:eek: