SAN FRANCISCO ― Wells Fargo & Co. reported higher fourth-quarter earnings as the bank set aside less money to cover bad loans.
The fourth-largest U.S. bank by assets said it earned 73 cents per share. The average estimate from analysts was 72 cents per share, according to Thomson Reuters I/B/E/S.
Net income applicable to common shareholders was $3.89 billion, compared with $3.2 billion, or 61 cents per share, a year earlier.
The San Francisco-based bank recorded a loan-loss provision of about $2 billion, which was down from about $3 billion a year earlier. For the seventh straight quarter the bank reversed reserves the bank had previously booked for bad loans.
The bank’s total loans increased about $9.5 billion from the end of September to $769.6 billion at the end of December. The loan growth mirrored a trend shown when JPMorgan Chase & Co (JPM.N) reported earnings on Friday.
Wells Fargo said it purchased 27 million shares of its common stock in the fourth quarter, plus an additional 6 million shares through a transaction that will settle in the first quarter of this year.
“I’m extremely pleased with Wells Fargo’s performance in 2011 – including strong deposit and loan growth, record cross-sell and record earnings,” CEO Jon Stumpf said in a statement.