NEW YORK (Standard&Poor's) July 11, 2014--Wells Fargo&Co. (WFC) reported strong second-quarter results, consistent with recent trends and our expectations. Earnings continued to benefit from improved asset quality and reserve releases but reflected lower mortgage revenue from the year-ago quarter. The trends of reduced nonperforming assets (NPAs), capital retention, and strong, diversified revenue streams continue to support our ratings on WFC (A+/Negative/A-1), which remain unchanged. WFC posted $5.4 billion in net income available to common stock (a solid 1.39% return on average assets) in the quarter, up 3% from the year-ago quarter and down slightly sequentially because of a more normalized tax rate. Pretax preprovision earnings declined slightly from the year-ago quarter, mainly reflecting lower noninterest income.
