On Tuesday, April 17, banking behemoth Wells Fargo
- Total reported revenue grew 7.4% to $8.7 billion.
- The net interest margin -- a key banking metric -- actually increased slightly to 4.95% in a tough interest rate environment.
- Total reported diluted earnings grew 10%, continuing an enviable streak of double-digit bottom line growth.
- Wells Fargo carries a three-star rating in Motley Fool CAPS, as does archrival JPMorgan Chase
(NYSE:JPM) . Bank of America(NYSE:BAC) and US Bancorp(NYSE:USB) have four stars, while Wachovia(NASDAQ:WB) has a lower two-star rating.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Total Revenue |
$8,726 |
$8,122 |
7.4% |
|
Net Interest Income |
$5,010 |
$4,870 |
2.9% |
|
Net Profit |
$2,244 |
$2,018 |
11.2% |
|
EPS |
$0.66 |
$0.60 |
10% |
Get back to basics with a look at the income statement.
Ratio Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Net Interest Margin |
4.95% |
4.85% |
0.10 |
|
Efficiency Ratio |
58.50% |
59.30% |
(0.80) |
|
Nonperforming Assets / Assets |
0.55% |
0.38% |
0.17 |
|
Return on Average Assets |
1.89% |
1.72% |
0.17 |
|
Return on Average Equity |
19.65% |
19.89% |
(0.24) |
Find out more about bank ratios.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Investments |
$84,254 |
$104,646 |
(19.5%) |
|
Loans |
$322,544 |
$303,460 |
6.3% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Deposits |
$311,157 |
$308,305 |
0.9% |
|
Total Liabilities |
$439,766 |
$450,467 |
(2.4%) |
Learn about bank assets and bank liabilities.
Related Foolishness:
- Is It Time to Buy Subprime?
- Calculating Return on Assets
- A Closer Look at Bank Stocks
- Foolish Forecast: Bank on Wells Fargo
US Bancorp, Bank of America, and JPMorgan are Income Investor recommendations. Discover more dividend-paying stocks with a free 30-day trial.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
