Wells Fargo boosted profit by cutting costs and seeing growth in loans and deposits. But a key gauge of measuring lending profitability fell. Fred Katayama reports.
Wells Fargo ended its 17 quarter streak of gains in per share earnings. But it boosted profit on a year-over-year basis by cutting costs. Wells Fargo credited an improved U.S. economy and housing market for its results. The nation's largest mortgage lender's performance is particularly under focus because the housing market slowed in the spring. Wells managed to boost home lending originations and mortgage banking revenue over the previous quarter, although both declined on a year-over-year basis. The bank also managed to boost loans and deposits. But a key gauge of measuring the profitability of loans, the net interest income margin fell. So did Wells Fargo's stock at the start of trade. But its steady performance has made it a stock market darling. Wells' stock has risen 14 percent this year, way outperforming its peers and making it the nation's most highly valued bank. JPMorganChase, the nation's biggest bank, reports on Tuesday.