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Friday, October 19, 2007

Wachovia: Increasing Credit Troubles Ahead

by Calculated Risk on 10/19/2007 08:34:00 AM

From the WSJ: Wachovia's Net Falls 10% On Loan-Loss Provisions

Wachovia Corp.'s third-quarter net income dropped 10% as loan-loss provisions quadrupled and the company recorded $1.3 billion in losses and write-downs. Wachovia also signaled increasing credit troubles ahead.
Loan-loss provisions surged to $408 million from $108 million amid growth in auto, commercial and consumer real estate lending. Net charge-offs were 0.19% of average net loans, compared with 0.16% a year earlier. Nonperforming assets, troubled loans that could turn into charge-offs, more than doubled to 0.63% of loans from 0.26%.