CHARLOTTE, N.C. (AP) - Wachovia Corp. said Monday its first-quarter earnings rose 33 percent, helped by growth in lending income and the acquisition of Golden West Financial Corp.
The Charlotte, N.C.-based bank said net income climbed to $2.30 billion, or $1.20 per share, from $1.73 billion, or $1.09 per share, a year ago. Results for the first quarter of 2007 included the bank's $24 billion acquisition of Golden West, which was announced in May 2006 and closed in October.
Revenue grew 17 percent to $8.24 billion from $7.06 billion last year.
Excluding merger and restructuring charges, the nation's fourth-largest bank earned $2.31 billion, or $1.20 per share, in the latest quarter.
Wall Street expected earnings of $1.16 per share without items on $8.56 billion of sales, according to analysts polled by Thomson Financial.
The results come as the company prepares for its annual shareholder meeting in Charlotte Tuesday.
Chief Executive Ken Thompson will have the chance to make his case for the Golden West acquisition, a move that worried some analysts because of an increased exposure to the mortgage market. The California thrift is known for more exotic adjustable rate mortgages, but traditionally has few problem loans.
With Golden West, Wachovia added more than $122 billion in mortgages during the quarter, almost all with adjustable rates.
'The integration of Golden West is on track, and we're pleased with the cross-sell potential of our expanded mortgage platform,' Thompson said in a statement accompanying the earnings report.
Shareholders also will get to vote on a proposal that would let them have a say on executive compensation.
This so-called 'say on pay' initiative, a practice common in Britain and other countries, is being pushed by a national union that contends an annual nonbinding stockholder vote on CEO compensation would help reign in soaring paychecks.
Proxy advisory firms Institutional Shareholder Services and Glass Lewis & Co. have recommended a vote in favor, while Proxy Governance is against it. Wachovia management opposes the proposal.
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