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.
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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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By GlobalDataWells 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.”
