NEW YORK (Standard&Poor's) July 22, 2010--Standard&Poor's Ratings Services said today that the strong quarterly results reported by Well Fargo&Co. (WFC; AA-/Negative/A-1+) will not affect its ratings on the company. WFC generated $21.4 billion in revenues in second-quarter 2010, a good result amid light peer revenue growth. Net income improved 20.2% to $3.1 billion from last quarter, attributable primarily to lower credit provisions. The net interest margin increased--also strong compared to peers'. Credit quality improved in our opinion. Provisions for credit losses reduced to $4.0 billion from $5.3 billion last quarter, and net charge-offs declined to 2.33% from 2.71%. WFC released $500 million in reserves, and the Pick-a-Pay portfolio is still performing better than expected.
