Wells Fargo & Co. (WFC), the fourth-largest bank in the U.S. by assets, Friday reported a 23 percent increase in profit for the first quarter, helped by lower loan loss provisions, despite a marginal drop in revenues.
Larger rival JPMorgan Chase & Co. (JPM) Friday reported a 33 percent jump in first-quarter profit, reflecting strong growth in Corporate & Investment Banking business, as well as lower expenses and provision for credit losses. Total revenues declined and missed view.
Net income applicable to common stock increased 23 percent to $4.931 billion or $0.92 per share from $4.022 billion or $0.75 per share in the prior year. On average, 33 analysts polled by Thomson Reuters expected earnings of $0.88 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter edged down to $21.3 billion from last year's $21.6 billion. Analysts expected revenues of $21.60 billion.
Net interest income slid 4 percent to $10.499 billion, while total noninterest income was nearly flat at $10.760 billion.
Provision for credit losses fell 39 percent to $1.219 billion, amid a sharp fall in provision at Community Banking. Total average loans were up $29.5 billion at $798.1 billion.
Chairman and CEO John Stumpf said, "Quarterly earnings and EPS increased at double-digit rates compared with first quarter 2012, while loans and deposits demonstrated continued growth in a challenging economic environment...expenses continued to decline as we improved efficiency across the franchise...''
Wells Fargo is the largest originator of home mortgages in the U.S. and under a federal program, has the mandate to originate, underwrite, and certify mortgages for FHA insurance.
Community Banking net income increased nearly 25 percent to $2.924 billion. Revenue decreased 4 percent from last year to $12.9 billion, primarily due to lower net interest income, equity gains, and volume-related mortgage banking revenue.
Home loan originations dropped to $109 billion from $129 billion in the previous year. Mortgage banking non-interest income slid nearly 3 percent to $2.8 billion.
Wholesale Banking net income was $2.045 billion, up 9.5 percent from last year. Revenue edged up 1 percent to $6.09 billion, driven by broad-based business growth and strong loan and deposit growth.
Wells Fargo expects second-quarter 2013 expenses to decline sequentially and to remain within the target efficiency range. WFC, which closed at $37.51 on Thursday, is losing around 2 percent in pre-market trading.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.