SAN FRANCISCO - Wells Fargo Inc., one of the nation's largest banks, said Wednesday that fourth-quarter earnings fell 38 %, hurt by a charge to cover fallout from the subprime loan crisis.
Net income fell to $1.36 billion, or 41 cents per share, in the October-December period from $2.18 billion, or 64 cents, a year ago. The latest quarter included $1.4 billion in losses on home equity loans in the fourth quarter, as borrowers in California and the Midwest struggle to make mortgage payments as many rates reset higher.
The charge was previously announced and is less than many of the bank's peers, at which similar writedowns are expected to total more than $65 billion in the quarter, as the subprime lending debacle guts balance sheets.
The company's non-performing loans rose to 0.7 % of total assets, an increase of 35 percent from last year.
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