Wells Fargo Forecasts Profits
The big news today is that Wells Fargo is forecasting a Quarter 1 profit of $3 billion. The news prompted a stock market rally in the financial sector that brought all of Wall Street higher today. I
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ndeed, the news about Wells Fargo profits has many optimistic that the worst is over for the financial sector and for the stock market. After all, even with the $6.1 billion in charge-offs that were part of the merger with Wachovia, Wells Fargo remains victorious.Indeed, Wells Fargo expects to continue being profitable in the future. Huliq news reports on the plans Wells Fargo expects to follow:
According to Howard Atkins in a CNBC interview today Mortgage business is booming, deposit inflow is good, there is good volume and profitability. The housing market is not out of the woods yet, but Wells is seeing good activity most notably in California. Wells Fargo had 190 billion in mortgage applications in the first quarter, a good majority of that from California. They closed loans for 800,000 customers across the country, with California being a big percentage of those loans. Atkins says Wells is extending a lot of credit, trying to keep credit flowing, and their losses are behind them. With this news Wells Fargo stock surged up 25% today. Atkins plan to keep them going; “extend credit, be profitable, and grow”.
This is good news for those looking to refinance or get new mortgages. Wells Fargo is essentially announcing that it is more than willing to extend credit to borrowers. As long as you have reasonably good credit and can make your payments, Wells Fargo might be the place to turn to if others are reluctant to help you with a home mortgage loan. If the housing market is one of the main issues in this economy, and if the financial sector is another, then it is clear that Wells Fargo’s profits may indicate that recovery is on the way.
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April 13th, 2009 at 3:56 pm
[…] week, Wells Fargo announced that it expected a Quarter 1 profit of $3 billion. This was big news, contributing to optimism that maybe — just maybe — financial […]