July 16, 2008 Wells Fargo Profit Dips, but Dividend Rises By THE ASSOCIATED PRESS Filed at 8:41 a.m. ET NEW YORK (AP) -- Wells Fargo's profit dropped 22 percent in the second quarter as more customers at the nation's fifth-largest bank failed to pay back their loans, the company said Wednesday. The San Francisco-based bank, however, raised its quarterly stock dividend to 34 cents from 31 cents -- at a time when many other financial institutions are slashing theirs to preserve capital. Shares soared 13 percent in premarket trading, after tumbling alongside other financial stocks over the last several days on worries about more U.S. mortgage losses and bank failures. Wells Fargo stock is down about 42 percent over the past year. Wells Fargo & Co. earned $1.75 billion, or 53 cents per share, in the April to June period, down from $2.28 billion, or 67 cents per share, in the same timeframe last year. The bank took a provision for credit losses of $3 billion. That provision included an increase in reserves for future losses of $1.5 billion. But revenue soared 16 percent to a record $11.5 billion, on to strength in the bank's deposits, mortgage banking, credit card, and wealth management businesses. ''We were able to lend more to current customers where we believed it was prudent and properly priced,'' said President and Chief Executive John Stumpf in a statement. He added that the company gained more business and customers through acquisitions. Analysts polled by Thomson Financial had predicted, on average, a profit of 50 cents per share on revenue of $10.65 billion. -- ------------------------------ * Dr. James Ellingson, jellings(a)me.umn.edu * * University of Minnesota, mobile : 651/645-0753 * * Great Lakes Brewing News, 1569 Laurel Ave., St. Paul, MN 55104 *