Wachovia Posts Record Profit

Net income jumps 14% as investment banking and wealth management units shine.
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posted a 14% increase in third-quarter profit, driven by record revenue in its wealth management and investment banking units.

The Charlotte, N.C.-based financial services giant reported record third-quarter net income of $1.26 billion, or 96 cents a share, compared with $1.11 billion, or 83 cents a share, a year ago.

Excluding items, Wachovia's profit was $1.32 billion, or $1 a share, compared with $1.17 billion, or 88 cents a share, in the third quarter of 2003. Analysts had expected the company to earn 99 cents a share, according to Thomson First Call.

Revenue at the nation's fifth-biggest banking company rose from $5.50 billion to $5.62 billion.

Retail brokerage activity declined, reflecting the bumpy performance of the equity market in the quarter

On the banking side, average core deposits were up 25%, and average loans rose 7%.

Wachovia's report follows a somewhat mixed earnings performance at


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Bank of America

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. Though both beat expectations, Citi's top line disappointed, while Bank of America saw a big drop in its mortgage business.

Wachovia shares closed at $47.29 Thursday.