Wells Fargo, the nation’s largest home lender, posted a 19 percent increase in second-quarter profit on Friday as it overcame a slowdown in the mortgage market on its way to record earnings.
Despite a recent uptick in interest rates, a development that has discouraged borrowers from refinancing their mortgages, Wells recorded its 14th consecutive rise in quarterly profit and ninth straight record report.
The results, bolstered by overall improvements in the economy and growth across its deposit business, included net income of $5.5 billion, or 98 cents a share. That compared with $4.6 billion, or 82 cents a share, in the period a year earlier. The new returns outpaced the expectations of analysts polled by Thomson Reuters, which had forecast earnings of 93 cents a share.
Revenue, roughly flat at $21.4 billion, also exceeded expectations.
“Wells Fargo achieved outstanding results for the second quarter,†the bank’s chief executive, John G. Stumpf, said in a statement.
Wells Fargo, along with JPMorgan Chase, kicked off bank earnings season. Citigroup, Goldman Sachs and other Wall Street giants will report next week.
