NEW YORK - Wells Fargo the 4th largest bank in the U.S. reported $3.4 billion of profit, $3.2 billion applicable to common shareholders or 61 cents a share. Nonperforming loans (NPL) declined from $34 to $32 the first time since the acquisition of Wachovia in 2008. Capital ratios continued to improve for Wells Fargo as Tier 1 Common Equity jumped to 8.4% from 8.0% in Q3. Shares of Wells' appear to be headed higher for the day despite being slightly down in premarket trading. Banks experienced a negative momentum swing due to the poor Citigroup results yesterday, and investors are unsure whether to continue this negative sentiment or focus on the actual companies.
U.S. Bancorp the 5th largest bank in the U.S. reported net income of $974 million or 49 cents a share. Nonperforming assets decreased to $5 billion from $5.4. The company continues to over provision for loan losses as it has an allowance for loan losses at a higher amount than its nonperforming loans. Because these NPL's are not sold at zero when a company over provisions they are likely to release more reserves into their earnings at some point in the future. The company's Tier 1 common equity ratio improved to 7.8% from 7.6%. Shares are moving higher in premarket trading.
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