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Wells Fargo & Co. today reported a fourth quarter net loss of $2.55 billion. The bank reported net income of $1.36 billion for the same period a year earlier. Net credit card charge-offs totaled $451 million, up 78.3% from $253 million for the same period a year earlier. Credit card fees generated revenues of $589 million during the quarter, up slightly from $588 million a year earlier. Credit card fees for the year totaled $2.34 billion, up 9.3% from $2.14 billion in 2007. The bank held $20.63 billion in credit card earning assets at the end of 2008, up 16.6% from $17.69 billion a year earlier. During a pre-recorded discussion about the results, Howard Atkins, Wells chief financial officer, said purchase volume on Wells credit cards fell 2% from the fourth quarter of 2007, and debit card purchase volume was up 3%. Atkins noted that 38% of Wells Fargo's retail bank consumer households had a Wells Fargo credit card at the end of 2008, up from 27% that did at the end of 2003. Moreover, 92% of Wells' consumer checking account customers had a debit card, up from 86% who did five years ago, he said. Wachovia Corp., which Wells acquired late last year, has credit card penetration of only 11% among its retail bank customers, which Atkins said represents a "natural growth opportunity" for Wells.
