Wells Fargo increases quarterly profit

Third-quarter profit for Wells Fargo & Co., the biggest U.S. mortgage lender, jumped 13 percent as a decline in revenue from mortgage lending was offset by reduced expenses and fewer soured loans.

Net income increased to $5.6 billion in the July-September period from $4.9 billion a year earlier. On a per-share basis, earnings were 99 cents, beating the 97 cents forecast by Wall Street.

Third-quarter revenue dipped to $20.5 billion from $21.2 billion, coming in below the analysts’ forecast of $21.1 billion. The bank’s stock edged down 1 cent to close at $41.40.

Interest rates on U.S. mortgages rose sharply in the spring and summer. That had a negative impact on Wells Fargo’s mortgage business. The San Francisco-based bank controls nearly a third of the U.S. mortgage market.

Associated Press

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