Wells Fargo, the nation’s largest home lender, posted a 19 percent increase in second-quarter profit on Friday as it overcame a slowdown in the mortgage market on its way to record earnings.þþDespite a recent uptick in interest rates, a development that has discouraged borrowers from refinancing their mortgages, Wells recorded its 14th-consecutive rise in quarterly profit and ninth-straight record report.þþThe results, bolstered by overall improvements in the economy and growth across its deposit business, included net income of $5.5 billion, or 98 cents a share. That compared with $4.6 billion, or 82 cents a share, in the period a year earlier. The new returns outpaced the expectations of analysts polled by Thomson Reuters, which had forecast earnings of 93 cents a share.þþRevenue, roughly flat at $21.4 billion, also exceeded expectations.þþ“Wells Fargo achieved outstanding results for the second quarter,” the bank’s chief executive, John G. Stumpf, said in a statement.þþWells Fargo, along with JPMorgan Chase, kicked off bank earnings season. Citigroup, Goldman Sachs and other Wall Street giants will report next week.
Source: NY Times
