On Friday, the largest US mortgage lender, Wells Fargo & Co, reported a 20% upsurge in quarterly earnings. The increase transpired after it reserved less money to conceal bad loans.

Wells Fargo earned higher from its mortgage business. The results suggested a stronger US housing market.

John Stumpf, Wells Fargo Chief Executive, said that the bank was diversified. He added that the other assets of the bank performed better when the rates rose.

By assets, Wells Fargo was considered as the fourth largest US bank. Its net income for shareholders increased to US$5.27 billion or 98 cents for every share. Experts anticipated only 93 cents for each share. This was the bank's 14^th consecutive quarter of greater revenues per share.

Wells Fargo earned US$112 billion from home loans in the second quarter. This was a huge increase from first quarter's US$109 billion. Its revenue from mortgage lending was around US$2.41 billion.