IMGCAP(1)]
Wachovia Corp.'s General Bank Segment, which includes credit and debit cards, mortgages, auto loans, and other consumer and business services, had net earnings of $857 million during the third quarter ended Sept. 30, down 42.9% from $1.5 billion during the same quarter last year, the bank reported today. The division generated net interest income of $3.8 billion, up 8.6% from $3.5 billion. Fee and other income totaled $1 billion, up 7% from $935 million. Wachovia did not report specific card data but said in a statement "strong" income from card interchange reflected a 14% increase in credit and debit card purchase volume from the third quarter of 2007. Wachovia reported charge-offs of $1.42 billion in consumer loans for the quarter, up 512% from $232 million during the same period last year. That reflects a charge-off rate of 1.97% of consumer receivables, up 170 basis points from 0.27% a year ago. The bank increased its provision for credit losses by $1.34 billion during the quarter, up 547% from $207 million last year. Wachovia reported $1.98 billion in average revolving consumer loans during the quarter, up 20% from $1.65 billion a year ago.
