Wells Fargo posts record profit
San Francisco-based Wells Fargo posted record profit Friday that beat Wall Street's expectations, but the company's revenue fell short of what analysts had predicted.
Fueled by a surge in mortgage loans, Wells Fargo earned $4.94 billion on revenue of $21.21 billion in the third quarter that ended in September. Compared with the year-ago July-September quarter, profit soared 21.7 percent and revenue rose 8 percent, the bank reported.
"By focusing on earning all of our customers' business and providing outstanding service, we continued to generate growth across our diversified set of businesses," CEO John Stumpf said.
Wells Fargo originated $139 billion in residential mortgages in the third quarter. That was up 56 percent from the year-ago third quarter, and 8 percent from the second quarter. Mortgage banking income totaled $2.81 billion, up 53.1 percent from the year-ago quarter.
"The economic and interest rate environments continue to present challenges for us and our industry," said Tim Sloan, the bank's chief financial officer.
Kaiser health begins to scout for CEO
Oakland-based Kaiser Permanente said Friday it has hired an executive recruitment firm to scout for a new chairman and chief executive to replace current CEO George Halvorson, who disclosed he will retire at the end of 2013.
"George is a highly effective chairman and CEO, and it will not be easy to fill his shoes," said Kim Kaiser, a board member for Kaiser Foundation Hospitals. "We will engage in a nationwide search to select a new chairman and CEO."
The bylaws of the organization require that the board of directors select the chairman and CEO of the board for Kaiser Foundation Hospitals and Kaiser Foundation Health Plan. Judith Johansen, a board member since 2006, will chair the process.
iGate profit nearly doubles
Fremont-based iGate Outsourcing company iGate posted a higher-than-expected quarterly profit as margins increased, but warned that clients are delaying contract renewals and it had dropped a "relatively large" client in the third quarter.
Shares of iGate climbed 1 percent, or 18 cents, to finish at $18 Friday.
Revenue for iGate totaled $271.1 million in the third quarter, up 2 percent from the year-ago quarter. That lagged Wall Street's prediction of $277.2 million in revenue.
The company earned $28.3 million, up 98 percent from the year-ago quarter. Excluding certain one-time items, per-share profit was 46 cents, well ahead of analysts' estimates of 36 cents.