On Monday, April 16, Wachovia
- Total revenue grew 15% to $8.1 billion. Management cited a "focus on cost control and risk management," while recent acquisitions of Golden West Financial and Westcorp also boosted results.
- Net interest income improved 27.1%, even as the net interest margin decreased to 3.01% -- slightly below analyst expectations.
-
Subprime issues don't appear to be causing a stir at Wachovia, and management doesn't see any significant problems with the $122 billion in mortgages acquired from Golden West.
- Total diluted earnings grew 10.1%. Last year's quarter included a $100 million payment that Wachovia received for allowing Bank of America
(NYSE:BAC) to acquire credit card firm MBNA. - Wachovia carries a two-star rating in Motley Fool CAPS, while crosstown rival B of A carries a more favorable four-star rating. Wells Fargo
(NYSE:WFC) , Citigroup(NYSE:C) , and JPMorgan Chase(NYSE:JPM) all carry average three-star ratings.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Total Revenue |
$8,061.0 |
$6,995.0 |
15.2% |
|
Net Interest Income (FTE) |
$4,497.0 |
$3,539.0 |
27.1% |
|
Net Profit |
$2,302.0 |
$1,728.0 |
33.2% |
|
EPS |
$1.20 |
$1.09 |
10.1% |
Get back to basics with a look at the income statement.
Ratio Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Net Interest Margin |
3.01% |
3.21% |
(0.20%) |
|
Efficiency Ratio |
55.70% |
60.07% |
(4.37%) |
|
Nonperforming Assets / Assets |
0.25% |
0.14% |
0.11% |
|
Return on Average Assets |
1.34% |
1.34% |
0.00% |
|
Return on Average Equity |
13.47% |
14.62% |
(1.15%) |
Find out more about bank ratios.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash & Investments |
$183,959 |
$189,951 |
(3.2%) |
|
Net Loans |
$433,317 |
$285,755 |
51.6% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Deposits |
$408,148 |
$328,564 |
24.2% |
|
Total Liabilities |
$633,521 |
$489,073 |
29.5% |
Learn about bank assets and bank liabilities.
Related Foolishness:
- Before the Call: Waiting for Wachovia
- Is It Time to Buy Subprime?
- Calculating Return on Assets
- A Closer Look at Bank Stocks
Bank of America and JPMorgan Chase are Income Investor recommendations.
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. The Fool has an ironclad disclosure policy.
