Wells Fargo profits rise on loans

17 January 2007

Wells Fargo, the largest bank on the US's west coast, has announced that its profits rose by 13 per cent in the final quarter of 2006.

According to the bank, net income for the last three months of the year rose to $2.18 billion from $1.93 billion during the same period of 2005, with its share price increasing from 57 cents to 64 cents per share.

The total annual profit of the San Francisco-based bank rose 11 per cent to $8.48 billion - breaking the company's records for the fifth year in a row.

Wells Fargo's recent successes have been attributed to its practice of loaning to small businesses and collecting more low cost deposits.

Chairman and chief executive Dick Kovacevich called 2006 "another terrific year of exceptional, broad-based performance across our more than 80 businesses", adding that the breadth and depth of Wells Fargo's business model was responsible for very strong and balanced growth across market segments.

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