Bank fizzle

18 January 2006 By Antony Currie Follow @AntonyMCurrie

It’s not just the flat yield curve hurting the bottom line. Mortgage growth is declining, credit losses rising and fee income flattening. That’s the message from Wells Fargo, Fifth Third, NCC and others. The answer to these woes may very well be another round of consolidation.

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Earnings season for US commercial and retail banks started in earnest on Tuesday. Amsouth, Compass Bancshares, Fifth Third, National City, Sovereign Bancorp, US Bancorp and Wells Fargo all reported fourthquarter and yearend results. Amsouth and Compass reported a small increase in net income, of 1.1% and 2% respectively since the third quarter. The other four each reported a drop in net income. US Bancorp slipped 1%, Wells Fargo 2.3%, Sovereign fell 8.5%, Fifth Third dropped 15.6% and National City 16.7%.

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