Wells Fargo Earnings Up 27 Percent
SAN FRANCISCO (AP) - Wells Fargo & Company reported a 27 percent increase in fourth-quarter profits as the banking and investment company completed its first full year after merging with Norwest Corp.
Wells Fargo, the nation's seventh-largest bank, on Tuesday posted net income of $970 million, or 58 cents a share, one cent below analysts' average estimate. The San Francisco-based bank lost $194 million, or a loss of 12 cents a share, during the same quarter in 1998.
Investors, however, appeared more concerned about the risk that the Federal Reserve would soon raise interest rates, squeezing the bank's future profits. In afternoon trading, Wells Fargo's shares were off 7 percent, or by $2.93 3/4, to $38.75 on the New York Stock Exchange.
Revenues for the quarter were $4.47 billion, up 16 percent from $3.86 billion.
Following it's earnings announcement, Wells Fargo said its chairman, Paul Hazen, has given up day-to-day management duties at the bank 14 months after helping sell it to the Norwest Corp.
Chief Executive Officer Richard Kovacevich will take over Hazen's operating duties.
During 1999, Wells Fargo converted two banking states and 450,000 banking households to common systems. The company plans an additional 40 separate systems conversions in 2000 including systems integrations in 19 banking states, acquisitions, and new product introductions.
Net income for the entire year was $3.75 billion, up 29 percent from $1.95 billion in 1998. Earnings per share for the year were up 27 percent to $2.23.
Revenues were $16.76 billion vs. $15.42 billion. |
