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The Markets
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Financial Services

Wells Fargo shops again in GE's bargain basement

Wells Fargo has agreed to buy General Electric's leasing finance business

Banking colossus Wells Fargo (NYSE:WFC) eked out a small gain in profit in what was a difficult third quarter for banks.

Post-tax profit of US$5.8bn was a shade higher than the US$5.73bn recorded in the third quarter of last year.

Earnings per share of US$1.05 were one cent above market expectations and three cents ahead of last year's number.

Revenue climbed 3.2% to US$21.88bn from US$21.21bn the year before, and was ahead of analysts' forecasts of US$21.76bn.

Wells Fargo has been shopping recently in the bargain basement section of industrial holding company General Electric's (NYSE:GE) garage sale, and on Wednesday it announced it was buying three GE units focused on business loans and equipment financing.

The acquisition follows the recent purchase of a GE unit that leases rail cars and locomotives.

The latest acquisition brings US$32bn in loans and leases under the roof of Wells Fargo, plus some 3,000 GE employees.

The purchase price of the latest GE deal was not disclosed.

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