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Wells Fargo to report record $3B profit for quarter

Wells Fargo says it expects to report a record $3 billion profit for the first quarter following its merger with Wachovia Corp. and “exceptionally strong” mortgage banking results.

Wells Fargo says it expects to report a record $3 billion profit for the first quarter of 2009.

The bank’s acquisition of Wachovia Corp. is exceeding expectations, contributing about 40 percent of the estimated $20 billion in revenue, the company said.

But the momentum also reflects “exceptionally strong” mortgage banking results. Wells Fargo said it originated $100 billion in mortgages in the first quarter.

“Wells Fargo’s business model typically produces above-peer revenue growth particularly during difficult economic times like these when others in the industry are incurring losses on activities in which we did not participate,” CFO Howard Atkins said in the company’s statement.