Citigroup and Wells Fargo Shares Climb Into Green in Trading After Earnings
Wells Fargo & Co.(NYSE:WFC) reported its results for the fourth quarter. Net income for the financial services rose to $4.1 billion (73 cents per share) vs. $3.41 billion (61 cents per share) in the same quarter a year earlier. This marks a rise of 20.1% from the year earlier quarter. Revenue was $20.6 billion last quarter. WFC beat the mean analyst estimate of 72 cents per share. It beat the average revenue estimate of $20.08 billion.
“I’m extremely pleased with Wells Fargo’s performance in 2011 – including strong deposit and loan growth, record cross-sell and record earnings,” said Chairman and CEO John Stumpf. “We achieved these results while completing the conversion of Wachovia’s retail banking stores – the largest such conversion in banking history – and now all of our 6,239 retail banking stores are on a single platform serving customers coast to coast. At the time of the merger, we said the integration of Wachovia would take three years and we are right on track. I couldn’t be prouder of how our two companies have come together as one, thanks to the important and tireless work of our more than 260,000 team members.”
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 its results for the fourth quarter. Net income for the financial services company fell to $1.17 billion (38 cents per share) vs. $1.31 billion (43 cents per share) a year earlier. This is a decline of 11% from the year earlier quarter. Revenue was $17.17 billion last quarter. C fell short of the mean analyst estimate of 50 cents per share. It fell short of the average revenue estimate of $18.54 billion.
Vikram Pandit, Citi’s Chief Executive Officer, said, “Overall, we made solid progress in 2011. We increased our net income to $11.3 billion, up 6% from the previous year, and reached key benchmarks in our consumer businesses, showing our strategy is achieving results. Clearly, the macro environment has impacted the capital markets and we will continue to right-size our businesses to match the environment. With Citi Holdings assets at 12% after the transfer of retail partner cards to Citicorp, we are increasingly focused on driving earnings through our core franchise and beginning to return capital to our shareholders 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).