San Francisco-based bank Wells Fargo reports second-quarter insurance income dropped 7 percent over the previous year, but rose 5 percent on a quarter-to-quarter basis.
Wells Fargo says second-quarter net income was down $37 million to $485 million. For the first six months, income is down 9 percent to $948 million. Comparing the first three months to the second quarter, insurance income is up $22 million. Compared to 2012's fourth quarter, income is up 23 percent.
Officials did not discuss insurance income during their conference call June 12. However, Chief Financial Officer Timothy J. Sloan points out that all of its businesses “are continuing to grow and you can see not only this quarter, but over the last year, that many of the businesses have been growing not only as it relates to net interest income but also to non-interest income.”
Company officials have attributed the decline in insurance revenue to lower commodity prices in its crop insurance company—Rural Community Insurance Services—and the discontinuation of lender placed insurance commissions. Wells Fargo has one of the nation's largest commercial insurance brokerage firms, but the bank does not breakout those numbers in its filings.
Wells Fargo bank reports second quarter income of $5.5 billion, up 19 percent on a year-over-year basis.
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