Wells Fargo (WFC: 19.58, 0.88, 4.71%) reported increased profit in the first quarter on Wednesday, largely on the basis of its acquisition of Wachovia last year.

Wells said its net income was $3.05 billion, or 56 cents a share in the first quarter, up from $2.0 billion, or 60 cents a share, in the same period the prior year. This was the first quarter in which Wachovia results were included.

Revenue was $21.02 billion, more than double that of the prior year’s quarter. Wachovia contributed 41% of that revenue.

The Tier 1 capital ratio was 8.3%, up from 7.9% the prior year, though Wells said the results were preliminary.

Wells Fargo said it had bolstered its balance sheet to prepare for credit losses, and had reined in its risk levels.

The company said total loans were down to $843.6 billion as of March 31, from $864.8 billion as of Dec. 31. The company attributed that to seasonality, “attrition in the mortgage and home equity portfolios,” “movement into the commercial paper and bond markets and efforts by some commercial borrowers to deleverage their businesses.”

Wells did say it expects economic deterioration to continue, noting that it had reduced risk in a number of areas to “better position us for the expected continued credit deterioration and economic headwinds.”