Friday, January 11, 2013

Wells Fargo's Mortgage Gains May Be Unsustainable

Importantly, though, Wells Fargo's net interest margin, the spread between what it pays on deposits and makes on loans, fell to 3.6% from 3.9% from a year earlier. Bank margins are decreasing as loans with higher-interests are paid off, and newImportantly, though, Wells Fargo's net interest margin, the spread between what it pays on deposits and makes on loans, fell to 3.6% from 3.9% from a year earlier. Bank margins are decreasing as loans with higher-interests are paid off, and newWells Fargo & Co.'s 25% gain in fourth-quarter earnings provides welcome news for the economy, with the U.S.'s fourth-largest bank showing solid increases in overall consumer and commercial lending and setting aside less cash for potential defaults.NEW YORK — Wells Fargo, the nation's biggest mortgage lender, kicked off a critical series of bank earnings reports by saying fourth-quarter profit rose 24% as an improving economy spurred 3.8% growth in loan demand. The growth in loans, first sinceRegardless of the angst about the fiscal cliff late last year, Wells Fargo reported that customers continued to borrow in fourth-quarter.
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