WELLS FARGO, the biggest and still-growing US home lender, reported another set of record quarterly earnings after originating more mortgages and cutting costs.
Second-quarter profit increased 17 per cent to $4.6 billion, Wells said yesterday. That equates to earnings per share of 82 US cents, 12 cents higher than the earnings per share reported for the same period last year and narrowly beating analysts’ expectations of 81 cents.
“Wells Fargo’s strong financial results this quarter again reflect the benefit of our diversified business model,” said John Stumpf, chairman and chief executive.
Results at the bank were also boosted by a government scheme aimed at helping distressed homeowners refinance their mortgages. The Home Affordable Refinance Program, or Harp, allows banks to earn fees through refinancing.
The bank announced on Thursday that it is to pay at least $175 million to settle allegations by the Department of Justice that it discriminated against African-American and Hispanic borrowers by steering them into high-cost mortgages. – Copyright The Financial Times Limited 2012
