Banking giant Wells Fargo
Second-quarter details echoed a recent investor presentation where Wells touted its customer-focused culture as a key factor in its increasing revenue. The company has earned its success by keeping customers happy while planning more internal investments and acquisitions.
This battle-tested strategy led to quarterly sales growth of 13% and diluted earnings per share that improved by 10%. The company also completed an acquisition of CIT Group's
Some of Wells' key banking metrics continue to lead the industry. Its quarterly net interest margin came in at 4.89%, while returns on assets and equity grew to 1.82% and 19.6%, respectively. Non-interest income, average loans, and average deposits also grew in the double digits, which management attributed to more business from its current clients.
Management doesn't seem to be too worried about the subprime mess, saying that "delinquency rates in both our prime and nonprime portfolios remained significantly better than published industry rates." Finally, total nonperforming assets increased slightly year over year to 0.79% of loans, but fell slightly below the 0.82% posted in the first quarter of this year.
Add it all up and it was business as usual at Wells Fargo. With control of only about 3.5% of the total financial services industry profit, it likely will only continue to catch up to rivals Citigroup
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Fool contributor Ryan Fuhrmann is long shares of Wells Fargo, but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.