Wells Fargo (NYSE: WFC) announced Wednesday that the company posted a better-than-expected profit in its fiscal fourth quarter, according to Associated Press.
The bank earned $394 million after paying preferred dividends, or 8 cents per share, when analysts polled by Thomson Reuters were expecting a loss of 1 cent per share. Earnings were reduced by 47 cents per share because of costs tied to repaying $25 billion in government bailout money.
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Wells Fargo lost $3.02 billion, or 84 cents per share, during the final quarter of 2008 when the credit crisis peaked.
Quarterly revenue exceeded expectations. Wells Fargo generated $22.7 billion in revenue during the quarter. Analysts had been expecting revenue of $21.97 billion.
Loans written off as being uncollectable nearly doubled from the year-ago period to $5.9 billion. However, the most recent quarter's results include the additional loans acquired when Wells Fargo bought Wachovia Corp. just over a year ago.
Wells Fargo set aside $5.91 billion for loan losses during the quarter, a 30 percent decline from the same period a year earlier.
For the full year, Wells Fargo reported a profit of $7.99 billion after paying preferred dividends, or $1.75 per share. It earned $2.37 billion, or 70 cents per share, in 2008.
Excluding dividends, Wells Fargo reported record yearly profit of $12.28 billion.
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