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Amid improvements in the mortgage sector, ""Wells Fargo & Company"":https://www.wellsfargo.com/ reported a 13 percent increase in first quarter profits, with a net income of $4.25 billion, and earnings per share at $0.75. Last year during the same quarter, the bank reported a net income of $3.76 billion, or $0.67 per share.
[IMAGE] [COLUMN_BREAK]Revenue increased $1 billion from fourth quarter 2011, to $21.6 billion. The $1 billion increase was driven by increases of $506 million in mortgage banking, $458 million in market sensitive revenue, and $181 million in trust and investment fees, the report stated.
""Revenue was up 20 percent (annualized) from the fourth quarter, led by continued strong mortgage banking results. Expenses increased in the quarter, but we currently expect a $500-$700 million overall reduction in noninterest expense during the second quarter,"" said Wells Fargo CFO Tim Sloan.
The San Francisco-based bank also reported mortgage banking noninterest income at $2.9 billion, up $506 million from fourth quarter 2011.
Mortgage originations increased as well, with the bank reporting $129 billion in originations, up from $120 billion reported in the fourth quarter.
Credit quality saw an improvement, with net charge-offs, or debt that is unlikely to be collected, at $2.4 billion this quarter, down from the 2011 fourth quarter when it was reported at $2.6 billion.
The 2012 first quarter report can be viewed ""online"":https://www.wellsfargo.com/downloads/pdf/press/1q12pr.pdf.
