A handful of U.S. financial firms are reporting earnings today, with some firms managing record results despite the lingering effects of the financial crisis.

Wells Fargo & Co. led the way by reporting record net income of US$12.3 billion for 2009, including fourth quarter earnings of US$2.8 billion on record quarterly revenues of US$22.7 billion.

The firm also said that the Wachovia integration is proceeding as expected. Credit losses are tracking better than originally estimated at the time of the merger, and expense synergies are on track for US$5 billion in annual run rate savings upon completion of the integration in 2011. Cumulative integration costs are now expected to be US$3 billion less than the originally assumed US$8 billion.

Investment banking giant Morgan Stanley said that its net income for the year was US$1.35 billion, compared with a net loss of US$246 million a year ago. Net revenues for the year were US$23.4 billion, compared with US$18.2 billion in the prior year. For the latest quarter, net income was US$617 million, compared with a net loss of US$10.95 billion in the fourth quarter of last year.

Nevertheless, the firm reported a loss from continuing operations of 93¢ per diluted share, reflecting preferred dividends and the repurchase of TARP capital, compared with a loss from continuing operations of US$1.26 per diluted share in the prior year.

State Street Corp. announced that it generated fourth quarter 2009 earnings per common share of US$1.00 on revenue of US$2.28 billion, compared with earnings of 54¢ per share on revenue of US$2.673 billion in the fourth quarter of 2008. It also reported full-year earnings per share of US$3.46 (before an extraordinary loss of US$3.7 billion due to consolidation of asset-backed commercial paper conduits onto the company’s balance sheet) on revenue of US$8.640 billion, compared with earnings per share of US$4.30 on revenue of US$10.693 billion in 2008.

U.S. Bancorp reported net income of US$602 million for the fourth quarter of 2009, driven by record total net revenue of US$4.4 billion. The company’s results were also impacted by two significant items: US$278 million of provision for credit losses in excess of net charge-offs and US$158 million of net securities losses.

Finally, Jefferies Group, Inc. announced fourth quarter net income of US$94 million on net revenues of US$532 million, and full-year net income of US$280 million on net revenues of US$2.1 billion.

IE