Wells Fargo reported that second quarter charge-offs soared to 11.60% from 10.13% in 1Q/09, driven by higher bankruptcy filings. However, delinquency (30+ days) edged down from 6.49% in the prior quarter to 6.02% for 2Q/09. Credit card outstandings also nudged up by 1% to $23.1 billion due to lower payments. Wells says it is offering fewer balance transfers and approving fewer balance increases as a result of the weak credit environment. Card fees grew 33% annualized from first quarter on higher volumes, not increased cardholder fees. Linked quarter purchase volume on credit cards was up 26%. Some of
this growth was seasonal, but also reflects increased customer usage and new customer growth, including new private label dealers at Wells Fargo Financialâs retail sales finance business. While credit losses on credit cards remain elevated, the business remains profitable due to its relationship based approach. Currently 15% of Wachovia retail bank customers have a credit card with Wells, compared with 36% penetration at legacy Wells Fargo. For complete details on Wells Fargo latest performance visit CardData (www.carddata.com).
WELLS FARGO CARD LOANS
Source: CardData (www.carddata.com)