Wells Fargo net income edged up 1.2 percent to $5.8 billion
New York - AFP
Wells Fargo reported slightly higher third-quarter earnings Wednesday behind solid community banking results and higher overall loans.
Net income edged up 1.2 percent to $5.8 billion. Revenues rose 3.1 percent to $21.88 billion.
Wells Fargo, the nation's largest mortgage lender, notched year-over-year increases in mortgage applications and originations, although the figures declined from the prior quarter.
The community banking business prospered behind increases in consumer checking and primary business checking customers and higher auto loan originations.
Total loans rose 7.6 percent to $903.2 billion from the year-ago level, driven by commercial, industrial and mortgage loan growth. Higher loan volume has helped offset the earnings drag of persistently low interest rates.
On the downside, Wells Fargo reported lower wholesale banking earnings. It cited a number of factors, including higher impairment on energy sector investments.
"Wells Fargo's strong third quarter results reflected the ability of our diversified business model to generate consistent financial performance in an uneven economic environment while continuing to meet our customers' financial needs," said Wells Fargo chief executive John Stumpf.
Earnings translated into $1.05 per share, meeting analyst expectations.
Shares of Wells Fargo fell 1.0 percent to $51.35 in pre-market trade