ML-Implode News - Wells Fargo Profit Falls as Energy Loans Sour, Costs Climb (AND ZIRP HURTS)

Wells Fargo & Co., the world's most valuable bank, said second-quarter profit fell 2.8 percent as more energy loans soured, expenses rose and revenue from mortgage lending declined... Net interest margin, the difference between what a bank pays for deposits and earns on loans, decreased 4 basis points in the quarter to 2.86 percent, falling short of some analysts' estimates. The measure, known as NIM, has declined the past four quarters.
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Provisions for credit losses more than tripled to $1.07 billion from a year earlier, tied largely to the bank's oil and gas portfolio, while net write-offs rose about 42 percent to $924 million, Wells Fargo said. Net interest income, including the loan-loss provision, declined 2.8 percent to $10.7 billion from a year earlier... "... "The oil and gas portfolio remains under significant pressure," Chris Wheeler, an analyst at Atlantic Equities LLP wrote in a note to clients.

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Wells Fargo Profit Falls as Energy Loans Sour, Costs Climb (AND ZIRP HURTS)