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Wells Fargo has 4Q loss
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January 19, 1999: 9:43 a.m. ET
Bank hit by charges from Norwest merger, loan losses
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NEW YORK (CNNfn) - Wells Fargo & Co. posted a loss in the fourth quarter, primarily because of the merger between Wells Fargo and Norwest Corp. as well as a loan loss write-off.
The San Francisco-based bank holding company says its pro forma loss for the 3 months was $194 million, or 12 cents per diluted share, compared with earnings of $650 million, or 39 cents a share, a year ago.
Earnings before charges of 46 cents per share were in line with the consensus of analysts surveyed by First Call.
About $1.2 billion in pretax charges, amounting to 45 cents per diluted share, were related to the merger completed in November. The latest results are presented as though the merger were in effect for all periods.
The company also says the quarter includes a $320 million provision for loan losses at its Island Finance unit. The losses reflect deteriorating economic conditions in Puerto Rico that were heightened by damage caused by Hurricane Georges in September.
"We are pleased with the progress so far in combining Wells Fargo and Norwest," says Wells Fargo (WFC) president Richard Kovacevich. "We have created a company with products, technology and markets that will provide outstanding opportunities for customers, team members and stockholders."
Wells Fargo stock closed Friday at 37-1/2, up 1-3/4. 
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Wells Fargo
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