Wells Fargo & Company’s community banking arm has posted a net income of $3bn for the second quarter of 2017, down 6% compared to $3.17bn in the year-ago quarter.
For the quarter ended 30 June 2017, revenue of $12.3bn increased $85m, or 1%, compared with a year ago.
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The bank said that the rise in the revenue was driven by the gain on the sale of a Pick-a-Pay PCI loan portfolio, higher other income, higher gains on sales of debt securities and higher card fees, but was partially offset by lower gains on equity investments, lower net interest income and lower mortgage banking revenue.
The division’s noninterest expense increased $575m, or 9%, from a year ago driven by higher personnel and professional services expense.
The provision for credit losses decreased $66m from a year ago primarily due to improvement in the consumer real estate portfolios, the bank said in its earnings statement.
Overall, the banking group reported a net income of $5.8bn for the second quarter of 2017, up 5% compared with $5.6bn for second quarter 2016. The bank reported $22.2bn of revenue.
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By GlobalDataCommenting on the performance, Wells Fargo CEO Tim Sloan said: “Second quarter 2017 results demonstrated the benefit of our diversified business model as we continued to generate strong financial results, invest for the future, and adhere to our prudent risk discipline. We remain committed to reducing expenses and improving the efficiency of our company, and we are very focused on our recently announced goals. As we work to improve our efficiency, we will also continue to innovate for the future.
“We recently advanced a number of important customer-focused initiatives, such as the launch of the ZelleSM person-to-person payment platform to our 28 million digital customers. As always, our success starts with our customers, and I appreciate the effort of our 271,000 team members in helping our customers succeed financially. We continued to make progress this quarter in our efforts to rebuild trust and build a better Wells Fargo and, while there is still more work ahead of us, we are on the right track and I am confident about our future.”
