It's big, Warren Buffett loves it, and it's one of the only banks that isn't getting annihilated by the credit crunch. If you're looking at Wells Fargo
Here's a quick overview of Wells Fargo that should help with your analysis.
Metric |
Dec. 31, 2007 |
Dec. 31, 2006 |
Q1 2008 |
Q2 2008 |
---|---|---|---|---|
Total revenue |
$39.39 billion |
$35.61 billion |
$10.56 billion |
$11.46 billion |
Total net income |
$8.06 billion |
$8.42 billion |
$2.00 billion |
$1.75 billion |
Net income per share |
$2.38 |
$2.47 |
$0.60 |
$0.53 |
Return on assets |
1.55% |
1.73% |
1.4% |
1.19% |
Return on equity |
17.12% |
19.52% |
16.86 % |
14.58% |
Net interest margin |
4.74% |
4.83% |
4.69% |
4.92% |
Non-performing assets as a percentage of total loans |
1.01% |
0.76% |
1.16% |
1.31% |
Tier 1 capital ratio |
7.59% |
8.93% |
7.87% |
8.24% |
Book value per share |
$14.45 |
$13.57 |
$14.58 |
$14.48 |
Dividends declared |
$1.18 per share |
$1.08 per share |
$0.31 |
$0.34 |
Shares outstanding |
3.383 billion |
3.410 billion |
3.317 billion |
3.321 billion |
What should leap off this page is that Wells Fargo isn't too damaged from where it stood in previous years (yet itβs down 20% from its 52-week high). That's a huge testament to how responsibly management operated during the unprecedented housing run-up. Unlike its peers, such as Bank of America
Whenever this spectacular credit crunch starts to wane, it's entirely possible that Wells will be quite a bit stronger than it was in previous years. Why? Because over the past decade, easy lending practices led to easy money in the bank sector. Now that the market is being purged of the glut, Wells is setting itself up to gain market share while others are busy cleaning up their mess.
What do you think about Wells Fargo? Our CAPS community of more than 110,000 investors gives it three stars out of five (pretty high for a bank stock these days). Of course, we'd love to get your take on it as well. Click here to join CAPS for free and share your thoughts.
For more on Wells Fargo and the turbulent bank market, check out:
- Wells Fargo's dominating quarter.
- Why Warren Buffet loves Wells Fargo.
- A look at what banks are in for dividend cuts.
- How dividend stocks could be the easiest way to double your returns.