Wells Fargo & Company reported record net income of $4.9 billion for third quarter 2012, up from $4.1 billion for third quarter 2011, and up from $4.6 billion for second quarter 2012. For the first nine months of 2012, net income was $13.8 billion compared with $11.8 billion a year ago.

Wholesale Banking

Wholesale Banking, which provides financial solutions to businesses with annual sales generally in excess of $20 million and includes (among other businesses) Middle Market Commercial Banking and Equipment Finance, recorded net income of $2.0 billion, up $112 million, or 6 percent, from second quarter 2012. Net income was up $190 million, or 11 percent, from third quarter 2011 led by higher pre-tax pre provision income and lower net charge-offs.

Total Loans

Total loans were $782.6 billion at September 30, 2012, up $7.4 billion from $775.2 billion at June 30, 2012. Included in this growth was $9.8 billion of 1-4 family conforming first mortgage production retained on the balance sheet.
In addition, there was growth in auto, credit card, private student lending, and commercial and industrial (C&I) loan balances. The growth in core loan portfolios more than offset the reduction in the non-strategic/liquidating portfolios, which declined $4.5 billion in the quarter.

Credit Quality

“Underlying credit quality continued to show improvement in the third quarter, as the overall financial condition of businesses and consumers strengthened, the housing market in many areas of the nation improved, and we continued to work to reduce problem assets and make new, high quality loans,” said Chief Risk Officer Mike Loughlin.

Read the full Wells Fargo earnings press release.