Wells Fargo reports record profit from refinances

Advertisement

SAN FRANCISCO — Wells Fargo & Co., the largest U.S. home lender, reported a 24 percent rise in fourth-quarter profit as the bank made more money from mortgage banking and squeezed more income out of revenue.

Net income advanced to a record $5.09 billion, or 91 cents a share, from $4.11 billion, or 73 cents, a year earlier, the San Francisco-based bank said today in a statement. That beat the 89-cent average estimate of 27 analysts surveyed by Bloomberg, some of whom were excluding one-time costs tied to a regulatory settlement.

Chief Executive Officer John Stumpf, 59, has expanded in mortgages, where Wells Fargo originated nearly 1 in 3 as of September and used the biggest U.S. branch network to challenge JPMorgan Chase & Co.’s status as the most profitable bank. Wells Fargo, the U.S. market value leader, used deposits to lower its cost of funding and counter meager loan and security yields.

Comments

Use the comment form below to begin a discussion about this content.

Sign in to comment

4 free views left!