Wells Fargo Conference Call Highlights

Wells Fargo WFC hosted its Q2 2014 conference call, releasing positive data in most of its segments.

Before the call, the company reported earnings EPS for the quarter one cent higher at $1.01 compared to consensus EPS $1.00, generating a three percent increase year-over-year. Revenue for the worlds largest mortgage banker came out to 21.10 billion increasing by seven percent from Q1, compared to analysts estimates of $20.80 billion.

Highlights From The Call:

• Wells Fargo reported earnings of $5.7 billion in second quarter, down from Q1 by three percent but up year-over-year by 4 percent.
• Net charge-offs down by 35 basis points to $717 million, total deposits up nine percent for the year.
• In the quarter the bank repurchased 39.4 million shares,returning $3.6 billion to shareholders through common stock dividends and net share repurchases including $1 billion. The company reannounced forward repurchase transactions of 19.4 million share expected to settle in 3Q14. Increased stock dividend by 17 percent in Q2, continue to to reduce number of shares. During the quarter Wells Fargo issued 7.8 million of long term debt.
• Non-interest income growth of three percent from last years Q2, net interest income has grown two percent, $246 million of non interest expense, and operating lose decline by 2.5 percent.
• Equity investments decreased by 4 percent in Q2 and investment securities increased by 8.7 billion.
• Income tax expense increased by $592 million, due to a $423 million discrete tax benefit.
• Period end loans increased by four percent from last year, due to discontinuation in student loans.
• Loan growth up 12 percent from Q2 2013 with, real estate mortgage loans grew three percent, auto loans increase 5.5 percent, commercial real estate grew by $4 million.
• Average deposit grow increased by nine percent from a year ago, generating $1.1 trillion. Primary consumer checking up 4.4 percent year-over-year. NIM declined by 3.15 percent in the quarter due to deposit growth.
• Debt and credit card volume increased heavily in the quarter with debit card purchase volume up eight percent and credit card volume up 16 percent.
• Total money under management increased by $35 billion from second quarter 2013.
• Wholesale banking up two percent from first quarter, benefit from the sale of a nearly $100 million in the sale of 40 insurance offices.
• Wells Fargo announced reserve release of $500 million.
• Anticipates a efficiency ratio between 55 to 59, predicting growing on the lower side of the scale.
• Management is confident on deposit growth in the environment of increasing rates.