Wells Fargo's Earnings: The Highlights & Lowlights

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July 11 (Bloomberg) -- Barclays' Jason Goldberg and Bloomberg's Michael Moore break down Well Fargo's earnings on "Street Smart." (Source: Bloomberg)

Low lights.

The highlights would be the credit performance.

The reserve release was pretty robust.

The credit environment was pretty good.

On the low side julie mentioned the net interest margin.

A 20 year low is a long time.

The banks are being squeezed by this interest rate and the lack of loan growth.

That has to change.

Something particular to wells fargo that has drawn your attention today?

Generally speaking we thought to loan growth was pretty good, core loan growth was up about 2%. we thought that was positive.

Mortgage is up over 30%. him a pretty strong growth in the purchase market, which should carry over into the third quarter.

Him credit quality continues to be good.

Him the income growth is really broad-based.

Expenses continue to be controlled.

Michael, part of the bank strategy -- wells fargo has been part of a diversified strategy.

Of it is it -- is it a strategy that is working well for wells fargo?

, it still seems to be stable and steady.

You had a streak of 17 straight quarters.

Overall their earnings have been less about the other banks.

They have been trying to get bigger in investment banking.

They have made little stripes but they are not a major player in that business yet.

That is something they want to get bigger in.

They are the largest mortgage lender, this is something we pay attention to in terms of their business.

What did we get in that front?

Market continues to improve.

Home prices are up 20% off the lows.

Interest rates are low.

I would say the home purchase mark was maybe a little softer than we thought.

You saw an increase in both their applications and their guidelines, which should bode well for the third quarter.

The market has him -- has continued to improve going forward.

They raised another half $1 billion.

The banks are getting to do less and less of it.

It does help the bottom line.

The big question was will this quarter be the end of it?

It was bigger than a lot of people thought.

Maybe they have a couple of quarters left.

Do you like what they're doing there and wells fargo?

We do like diversified business.

You certainly have several businesses that are going to do well on average over time.

We have more business is doing well than not.

This company will consistently grow earnings and revenues.

I think this quarter is indicative of that.

I know you're going to be really busy at bloomberg news, covering them.

You have citigroup on monday, jpmorgan on tuesday, morgan stanley on wednesday.

What should we be looking out for on those names?

The one thing wells fargo does not give you a read through on is the investment banking and trading environment.

Of that is what we are going to be looking for.

Investment banking is expected to be pretty strong.

Some of the banks have warned about that.

Was june a little bit better?

You had j.p. morgan and citigroup same it was not good but it did pick up in june.

Jason, you're overweight a lot of names in this group.

What are the winners and losers in this group for you?

P we are generally attracted to the bigger banks.

Granted there have been a lot of negative headlines.

Our banks conform to the regulatory environment and adapt.

They are poised to grow.

They will clearly benefit from any improvement in the economy.

This group is leveraged to that.

In terms of wealth they do not have a lot of control in the interest environment.

They don't have a lot of control and their capital return.

They have gotten the approval for this year.

What can they do to help investors for the rest of the year?

I think they will continue to grow.

The deposits today are not worth a lot.

As interest rates rise the more customers we can bring in.

They will continue to grow the top line.

Thank you so much for that.

I will be speaking with the

This text has been automatically generated. It may not be 100% accurate.


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