Wells Fargo Sees Boost From Q2 Profits

Improvements in mortgage banking and credit quality helped ""Wells Fargo"":https://www.wellsfargo.com/ see income gains for the second quarter of 2012.

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On Friday, Wells Fargo reported a net income of $4.6 billion, or $0.82 per share. The reported earnings for the most recent quarter was an 18 percent increase from the same quarter a year ago, when net income was $3.9 billion, or $0.70 per share.

Net income for the most recent quarter was also up from the previous quarter when net income was $4.2 billion, or $0.75 per share.

Mortgage banking noninterest income increased to $2.9 billion, up $23 million from the first quarter.

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The San Francisco-based bank also saw originations increase to $131 billion compared to $129 billion in the first quarter of 2012.

Mortgage applications improved to $208 billion, up from $188 billion in the prior quarter.

Credit quality improved for the bank as well, with net charge-offs down to $2.2 billion in the second quarter from $2.4 billion in the previous quarter. Non-performing assets were $24.9 billion, down by $1.8 billion from the first quarter.

The loan loss reserve release was $400 million, unchanged from the previous quarter.

Loans 90 days or more past due totaled $1.4 billion at the end of the second quarter compared with $1.6 billion at the end of the first quarter.

""Credit performance over the past two years has steadily improved and the second quarter results continued that trend. Absent significant deterioration in the economy, we expect continued but more modest improvement for the remainder of the year, and we continue to expect future reserve releases in 2012,"" said Chief Risk Officer Mike Loughlin in a statement.

The bank provided $669 million for mortgage loan repurchase losses, compared with $430 million in first quarter.

Wells Fargo said the increase in the repurchase provision was mostly due to an increase in projected demands from the GSEs on loans sold between 2006 and 2008.