Wells Fargo & Co. on Tuesday said that its second-quarter profit rose 30 percent, as the number of uncollected loans and credit card bills dropped sharply, enabling the bank to release a big chunk of the money set aside to cover bad lending, The Associated Press reports.
The San Francisco bank said net income for the three months ended June 30 rose to $3.73 billion, or 70 cents per share, compared with $2.88 billion, or 55 cents per share, in the year-ago quarter.
Analysts, on average, were expecting profit of 69 cents per share, according to data provided by FactSet.
Total revenue fell 5 percent to $20.39 billion from $21.39 billion last year. That was short of the $20.43 billion Wall Street was expecting.
Revenue in its largest segment, community banking, fell 8 percent to $12.57 billion. Total loans fell 2 percent to $751.92 billion, but in a bright spot, core deposits rose 7 percent to $808.97 billion.
Net interest income, or the money earned from deposits and loans, fell 7 percent to $10.68 billion from $11.45 billion last year. Noninterest income, or money earned from fees and investments, slipped 2 percent to $9.71 billion from $9.95 billion last year.
