Wachovia Corp. posted a 10% decline in third-quarter profit Friday, missing forecasts, as it suffered $1.3 billion of write-downs resulting from credit market turmoil.
The drop was the first in six years for the fourth-largest U.S. bank. It concluded a dismal week for earnings at large U.S. banks, which have been battered by mounting consumer loan losses as the housing market slumps, and sinking investor demand for mortgages and other debt.
Profit fell 57% at Citigroup Inc. and 32% at Bank of America Corp. It rose 2% at JPMorgan Chase & Co. and 4% at Wells Fargo & Co. All but JPMorgan disappointed investors.
Charlotte, N.C.-based Wachovia's net income fell to $1.69 billion, or 89 cents a share, from $1.88 billion, or $1.17, last year. Excluding merger costs, profit was 90 cents a share, 14 cents below the average analyst forecast, according to Reuters Estimates.