Wells Fargo & Co. (WFC), the biggest U.S. home lender, climbed the most since November as profit rose to a record and it announced a goal of cutting $1.5 billion in quarterly costs by the end of next year.
Wells Fargo advanced 5.7 percent as executives revealed details of a plan to shrink noninterest expense to $11 billion a quarter by the end of 2012. Net income climbed 29 percent to $3.95 billion, or 70 cents a diluted share, the San Francisco-based company said today in a statement.
“The market is applauding the detail they gave regarding new cost-saving initiatives,” said Shannon Stemm, an analyst at Edward Jones & Co. in St. Louis, who has a “hold” rating on the company. “Wells Fargo is ahead of its peers in recognizing that cutting expenses may be the only way to combat revenue weakness.”
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