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Wells Fargo reports record-setting profits

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TWC News: Wells Fargo reports record-setting profits
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CHARLOTTE -- Wells Fargo is reporting another record-setting quarter. The bank says its net quarterly income for April, May and June was up sharply from the same period last year.

Wells Fargo reported net quarterly income of $4.6 billion. That's up 17 percent from the same three month period last year.

The San Franciso-based bank says an increase in mortgage lending and a decrease in bad loans led to the year-over-year increase. Wells Fargo is the nation's largest mortgage lender and it reported mortgage originations in the second quarter were more than double what they were a year ago.

In a conference call with investors, CEO John Stumpf said the numbers are a sign that the nation's housing market is beginning to improve.

"We've seen increases in sales and pricing in markets throughout the country, even in some of the hardest hit areas during the downturn," he said.

Stumpf said the company is still working to control expenses and has reduced positions in high cost markets by 10 percent since the beginning of last year. Wells Fargo is moving some North Carolina retirement services positions to facilities overseas, though it anticipates its total employment here to remain around 20,000 people.

The bank's operating losses in the second quarter includes the accrual of $175 million to settle claims of discrimination against minorities in mortgage lending.

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