Wells Fargo’s Retail Portfolio Closes In on $50 Billion in 3Q

Wells Fargo & Co. originated $6.9 billion of auto loans in the third quarter, pushing its retail portfolio up to $49.7 billion of direct and indirect loans. The bank had another $7.5 billion of commercial loans on the books at quarter’s end.

Though down 3% from the previous quarter, 3Q origination volume was the bank’s second-highest level on record.

Meanwhile, year-over-year loan performance worsened for the indirect auto portfolio. Net charge-offs totaled 0.65% for the September quarter, up from 0.36% in 3Q12, while the 30-day delinquency rate rose to 1.69% from 1.27%.

Overall, the bank reported record third-quarter net income of $5.6 billion, or $0.99 per share, up from $4.9 billion, or $0.88 per share, for 3Q12. The bank said growth in the auto portfolio, along with increases in commercial, real estate, and credit card business, “more than offset” the reduction in the non-strategic liquidating portfolios.