Wells Fargo 2Q profit rises as bad loans ease

July 21, 2010 6:41:09 AM PDT
Wells Fargo & Co. says its second-quarter profit rose 12 percent, and the results show signs that bad loans are easing.

The San Francisco-based bank posted net income applicable to common shareholders of $2.88 billion, or 55 cents per share, up from $2.58 billion, or 57 cents per share, last year. The per-share results reflect more outstanding shares in the recent period.

The results top Wall Street's forecast for 48 cents per share.

Wells Fargo's lending business showed signs of gaining strength as it wrote off fewer bad loans than in the first quarter, and growth in loans that are past due and likely to default slowed.

Wells shares gained $1.39, or 5.4 percent, to $27.30 in premarket trading.