Wells Fargo & Co. (NYSE:WFC) reported its results for the third quarter. Net income for the financial services rose to $4.06 billion (72 cents per share) vs. $3.34 billion (60 cents per share) in the same quarter a year earlier. This marks a rise of 21.6% from the year earlier quarter. Revenue was $19.6 billion last quarter. WFC fell short of the mean analyst estimate of 73 cents per share. It fell short of the average revenue estimate of $20.22 billion.
“The economic recovery has been more sluggish and uneven than anyone anticipated,” said Chairman and CEO John Stumpf. “We can’t change the economic environment, yet we have worked hard to control the variables we can – making our products and services more relevant to individuals and businesses, focusing on the customer, making as many loans as possible and growing new relationships – as well as fostering longtime ones. We see the results of this focus in growing cross-sell, deposits, and loans. Customers need a trusted financial partner, especially in challenging economic times. Wells Fargo has proven to be that partner over and over again.We are nearing the completion of our three-year Wachovia integration process. To date, Regional Banking has now completed its store conversions and our retail stores are Wells Fargo coast-to-coast on a single platform. Thank you to every single team member who has been involved in this remarkable effort.”
Competitors to Watch: Bank of America Corp. (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), U.S. Bancorp (NYSE:USB), PNC Financial Services (NYSE:PNC), SunTrust Banks, Inc. (NYSE:STI), KeyCorp (NYSE:KEY), Goldman Sachs Group, Inc. (NYSE:GS), Regions Financial Corp. (NYSE:RF), and Morgan Stanley (NYSE:MS).
Citigroup Inc. (NYSE:C) reported net income above Wall Street’s expectations for the third quarter. Net income for the financial services company rose to $3.77 billion ($1.23 per share) vs. $2.17 billion (70 cents per share) in the same quarter a year earlier. This marks a rise of 73.9% from the year earlier quarter. Revenue was $20.83 billion last quarter. C beat the mean analyst estimate of 81 cents per share. It beat the average revenue estimate of $19.59 billion.
Vikram Pandit, Citi’s Chief Executive Officer, said, “Citi continues to navigate a challenging economic environment and delivered another quarter of solid operating results. We continued to manage our risk prudently while growing the businesses that are core to our strategy. We have reduced the size of Citi Holdings to 15% of our balance sheet and further improved our financial strength. We are very well positioned as we help our clients navigate the world’s current trends and key opportunities.”
“In addition, over the past few years we have significantly strengthened our retail partner cards business and it has earned $2.2 billion pre-tax through the first three quarters. After a careful review of the business, which took into account current trends in credit and technology, we have decided that it makes strategic sense to move retail partner cards and a vast majority of its assets from Citi Holdings into Citicorp. The transition will be completed by the end of this year.”
Competitors to Watch: Bank of America Corp. (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), Morgan Stanley (NYSE:MS), Barclays PLC (NYSE:BCS), Goldman Sachs Group, Inc. (NYSE:GS), U.S. Bancorp (NYSE:USB), UBS AG (NYSE:UBS), Deutsche Bank AG (NYSE:DB), and Royal Bank of Scotland Group plc (NYSE:RBS).