Wells Fargo & Co. posted a rise in first-quarter net income
even as the banking giant's revenue dropped from the year-earlier
quarter.
Wells reported net income of $5.89 billion, compared with
year-earlier income of $5.17 billion. Per-share earnings,
reflecting the payment of preferred dividends, were $1.05 versus 92
cents a year earlier.
Revenue declined to $20.6 billion.
Analysts polled by Thomson Reuters expected per-share earnings
of 97 cents on revenue of $20.6 billion.
As the largest U.S. mortgage lender, Wells Fargo is viewed as a
bellwether for the U.S. housing market. Banks have seen their
mortgage banking profit squeezed for several quarters now as a
refinancing boom continues to fizzle amid higher interest rates.
Still, analysts widely expected Wells Fargo's results to hold up
better than other banks this quarter, as the lender has been able
to rein in expenses and also benefit from stronger credit
quality.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
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