Wells Fargo 2Q profit leaps 30 pct; defaults drop
NEW YORK (AP) — Wells Fargo & Co. says its second-quarter profit rose 30 percent, boosted by a release of reserves set aside to cover souring loans as its customers continued to improve their loan and credit card payments.
The San Francisco bank says its net income rose to $3.73 billion, or 70 cents per share, in the three months ended June 30. Wall Street was expecting 69 cents per share, on average.
Revenue edged down 5 percent to $20.39 billion, just short of analyst estimates for $20.43 billion. Revenue in its largest segment, community banking, fell.
The largest contributor to the quarter's results came from a $1 billion release from the money set aside to cover uncollected loans and credit card bills, as the amount written off from bad loans dropped.
In premarket trading, Wells Fargo shares added 33 cents to $27.21 per share.