Wells Fargo posts surprising profit numbers for the first quarter.
Wired PR News – News of Wells Fargo’s first quarter profit numbers came as a shock to many. As reported by CNNMoney.com, the San Francisco based company has stated that it anticipates $3 billion in earnings for the first quarter, which led to a 30 percent increase in Wells Fargo stock on Thursday.
Despite the news, many analysts state that banks should continue to remain cautious due to falling real estate prices, and prepare for impending rainy days. Paul Miller, an analyst with FBR Capitol Markets is quoted in the CNN Money report as stating in a note written to clients Thursday, “We believe that credit quality materially deteriorated in the first quarter and that Wells Fargo is under-reserving for expected future losses… We remain cautious based on what we don’t know.”
As noted in the report, Wells Fargo received $25 billion in government aide last October.
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