Wells Fargo & Company’s community banking arm has reported a net income of $2.23bn for the third quarter (Q3) ended 30 September 2017, a 31% slump compared to the year ago period.

The division’s revenue during the reporting period was $12.06bn, a 3% fall from $12.38bn in the same quarter last year.

Wells Fargo said that the decrease in the revenue was primarily due to lower mortgage banking revenue and deposit service charges.

The unit’s noninterest expense increased by 13% from $6.95bn to $7.83bn , driven by higher operating losses and higher professional services expense. The provision for credit losses remained almost flat at $650m.

Overall, the banking group reported a net income of $4.6bn for the third quarter of 2017, an 18% slump from $5.64bn in the corresponding quarter of 2016.

The third quarter figures included a $1bn charge for previously disclosed mortgage-related regulatory investigations. The group’s revenue dipped 2% year-on-year to $21.9bn.

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Wells Fargo CEO Tim Sloan said: “Over the past year we have made fundamental changes to transform Wells Fargo as part of our effort to rebuild trust and build a better bank.

“While our financial performance in the third quarter included the impact of a litigation accrual for previously disclosed, pre-crisis mortgage-related regulatory investigations, I am proud of the commitment of our 268,000 team members who put our customers first.

“We saw total average deposit growth; loan growth in our residential mortgage, credit card and subscription finance portfolios; as well as higher assets under management in Wealth and Investment Management.”