Wells Fargo bucks the recession

US bank Wells Fargo has surprised investors by saying it expects a record net profit. ┬á The bank said profit will be $3 billion in the first quarter, due to better-than-expected results at newly-acquired lender Wachovia, previously the fourth largest US bank that nearly collapsed last year. ┬á Banking giant Citigroup had originally tried to block the merger between Wachovia and Wells Fargo, but the US Federal Reserve permitted Wells FargoÔÇÖs $12 billion takeover after its all-stock offer.┬á "Wachovia's outstanding franchise has proven to be everything we thought it would," the bank said. ┬á The bank said it expected revenue of $20 billion for the quarter, translating into "another quarter of double-digit revenue growth" of 16 percent. ┬á Wells Fargo's announcement is the latest in a line of positive statement from banks such as Citigroup, Bank of America and Deutsche Bank about their performances in 2009. Its shares led US banking stocks higher and helped to push the broader Dow Jones average of US stocks up 2.5 percent. ┬á Wells Fargo's results are set to include $372 million in dividend payments to the US Treasury, which took a stake in many banks in exchange for a cash injection. ┬á US financier Warren Buffett has a stake in Wells Fargo through his holding company, Berkshire Hathaway, which has lost its top credit rating from Moody's.