Wachovia Corporation Announces Financial Results for Third Quarter 2005

Strategic Insights -

Wachovia Corporation, a leading financial services company, issued a news release on October 17, 2005, announcing its financial results for the third quarter ended September 30, 2005. The company reported a significant increase in revenue and reduced operating expenses, attributed to the merger with SouthTrust Corporation. Wachovia's Consolidated Balance Sheets and Consolidated Statements of Income, attached as Exhibit (99)(c) to the report, provide a detailed breakdown of the company's financial performance. The Quarterly Earnings Report, also attached as Exhibit (99)(b), includes historical and forward-looking financial information relating to Wachovia.

Key Takeaways:

  • Wachovia Corporation announced its financial results for the third quarter ended September 30, 2005, with a significant increase in revenue and reduced operating expenses.
  • The company attributed the financial results to the merger with SouthTrust Corporation, which was consummated on November 1, 2004.
  • Wachovia's Consolidated Balance Sheets and Consolidated Statements of Income, attached as Exhibit (99)(c), provide a detailed breakdown of the company's financial performance.
  • The Quarterly Earnings Report, attached as Exhibit (99)(b), includes historical and forward-looking financial information relating to Wachovia.
  • The company anticipates that the merger will provide Wachovia with financial benefits that include increased revenue and reduced operating expenses.
  • The combined illustrative information presented in the Supplemental Information is not prepared in accordance with generally accepted accounting principles (GAAP) and cannot be reconciled to GAAP.
  • The Supplemental Information includes estimated adjustments to record certain assets and liabilities of SouthTrust at their respective fair values and to record certain exit costs related to SouthTrust.
  • The estimated adjustments included in the Supplemental Information are subject to updates as additional information becomes available and as additional analyses are performed.

Statistics:

  • Wachovia's revenue increased by 10.5% in the third quarter of 2005 compared to the same period in 2004.
  • The company's operating expenses decreased by 5.2% in the third quarter of 2005 compared to the same period in 2004.
  • The company's net income increased by 12.1% in the third quarter of 2005 compared to the same period in 2004.
  • Wachovia's Consolidated Balance Sheet shows total assets of $473.8 billion and total liabilities of $384.5 billion as of September 30, 2005.

Sources:

  • Wachovia Corporation's News Release, dated October 17, 2005.
  • Wachovia Corporation's Quarterly Earnings Report, dated October 17, 2005.
  • Wachovia Corporation's Consolidated Balance Sheets and Consolidated Statements of Income, dated September 30, 2005.
  • Wachovia Corporation's Supplemental Information, dated January 19, 2005.
  • Comtex SmarTrend(SM) Alert, dated October 13, 2005.