Wells Fargo & Co., operator of the Wachovia Bank network in Connecticut, says its second-quarter profit rose 12 percent, and the results show signs that bad loans are easing.
The San Francisco-based bank posted net income applicable to common shareholders of $2.88 billion, or 55 cents per share, up from $2.58 billion, or 57 cents per share, last year. The per-share results reflect more outstanding shares in the recent period.
The results top Wall Street’s forecast for 48 cents per share.
Wells Fargo’s lending business showed signs of gaining strength as it wrote off fewer bad loans than in the first quarter, and growth in loans that are past due and likely to default slowed.
By January, Wells Fargo says it will have fully absorbed and changed the name of its Connecticut Wachovia network, which has 1,500 employees and 76 branches.
At 11 a.m., Wells Fargo shares were up $1.20, or 4.6 percent, to $27.11.
