Wells Fargo’s all three business segments – Community Banking segment, Wholesale Banking segment, and Wealth, Brokerage and Retirement segment – posted net income growth in the quarter.
Revenue for the first quarter of 2011 was $20.3bn, compared with $21.4bn in the corresponding quarter of 2010. The linked-quarter decline in revenue was primarily due to lower mortgage banking revenue and lower net interest income.
Net interest income decreased 4% in the first quarter to $10.65bn from $11.15bn a year ago.
Net interest margin was 4.05%, compared with 4.27% in the prior-year quarter.
Noninterest income was $9.68bn, a decline of 6% from $10.30bn in the previous year. However, provision for credit losses fell 59% to $2.21bn from $5.33 billion a year ago.
Wells Fargo chairman and CEO John Stumpf said their strong first quarter results reflected positive trends in their business fundamentals as credit quality improved, capital ratios increased and cross-selling reached new highs.
"Consumers continue to be hesitant to borrow, yet our robust deposit growth reflects the strong loyalty and market share we enjoy among customers," Stumpf added.
