Wachovia Beats Expectations

Wachovia(WB Quote) beat second-quarter earnings expectations by 2 cents as the Southern banking giant's profits rose 76% from the year-ago period.

The Winston-Salem based bank, which has been the subject of a takeover duel between First Union(FTU Quote) and SunTrust(STI Quote), said its operating earnings totaled $252.7 million, or $1.22 a share. Twenty analysts polled by Thomson Financial/First Call had expected $1.20 a share. In the year-earlier period, the company earned $143.3 million, or 70 cents a share.

Wachovia said gains on securities transactions offset increased loan loss provisions. In the second quarter, the bank set aside $215.7 million for bad loans, compared with $121.5 million in the first quarter. ...