It looks like they are accurate, at least about the fourth quarter of 2011. This morning welcomed the second round of earnings reports (after JP Morgan announced a 23% 4Q loss on Friday) and Wells Fargo is up 20%. The bank announced a fourth-quarter profit of $4.1 billion ($.73 per share), up from $3.4 billion ($.61 per share) in the same quarter in 2010. The profit exceeded analysts’ estimates by one cent per share.
Wells Fargo’s 2011 profits beat 2010’s by 28% ($15.9 billion this year versus $12.36 billion last year.) The bank doesn’t rely as heavily on investment banking as other banks, are more involved in commercial lending, and said that customers made bigger deposits and paid their bills on time last quarter. Check out coverage on Forbes, The Wall Street Journal, The New York Times, and Reuters.
On the other side of the street, Citigroup reported an 11% decline in profit this morning. The bank’s profits were $1.17 billion, down from $1.31 billion the previous year. CEO Vikram Pandit blamed the volatility of global markets for the underwhelming fourth quarter results. Check out coverage at Reuters, BBC, The Telegraph, and The Wall Street Journal.