Wells Fargo & Co.‘s quarterly profit jumped 22%, beating expectations, despite a fall-off in the mortgage business, which generates a quarter of all revenue at the San Francisco banking giant.
The quarter was marked by cost-cutting, fewer loan losses and growth in loans and deposits. Revenue declined slightly, reflecting pinched profit margins on lending at a time of record-low interest rates.
Wells Fargo raised its quarterly dividend and, having passed its regulatory stress test, plans “to return even more capital to shareholders in the year ahead," John Stumpf, the bank’s chairman and chief executive, said in announcing the results Friday morning.
Net income for the first three months of 2013 totaled $5.17 billion, or 92 cents a share, compared with $4.25 billion, or 75 cents a share, in the year-earlier quarter. Analysts had expected 88 cents a share. Revenue fell from $21.6 billion to $21.3 billion, coming up short of what Wall Street had anticipated.