Wells Fargo, the nation’s largest home lender, posted a 22 percent increase in first-quarter profit on Friday as it continued to notch record gains.
The bank, which is based in San Francisco, reported earnings of $5.2 billion, or 92 cents a share, compared with $4 billion, or 75 cents a share, in the period a year earlier. The results outpaced estimates of analysts polled by Thomson Reuters, who had forecasted earnings of 88 cents a share.
For Wells, it was the 13th consecutive rise in quarterly earnings and the eighth consecutive record.
“Wells Fargo delivered outstanding first-quarter 2013 results for our shareholders,†the bank’s chief executive, John G. Stumpf, said in a statement.
In a downside for the bank, however, its revenue slipped slightly over last year, to $21.3 billion, compared with $21.6 billion in the period a year earlier.
The bank’s fortunes rise and fall with the mortgage market. In recent years, as consumers refinanced their mortgages to take advantage of record low interest rates, Wells Fargo has has seized the opportunity. The bank now originates roughly a third of all mortgages in the country.
In the first quarter, that business helped lead the growth. Even as its mortgage originations slowed, the banks overall loan portfolio grew. And profit in the community banking division, which includes Wells Fargo’s retail branches and mortgage business, climbed 24 percent, to $2.9 billion.
“Loans and deposits demonstrated continued growth in a challenging economic environment,†Mr. Stumpf noted.
But the returns were spread across the bank. The unit that caters to corporations showed improvement. The bank also reported gains in its wealth management business,
It was a welcome sign for the banking industry.
Wells Fargo, along with JPMorgan Chase, kicked off bank earnings season. Citigroup, Goldman Sachs and other Wall Street giants will report next week.
