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Wells Fargo announces profit increase

October 11
12:52 PM 2013

Wells Fargo & Co increased better than expected, said a report from Reuters. Wells Fargo rose by 13% in the third quarter. The biggest US mortgage lender had made up for a decline in that business. This was through a release of a large chunk of money had set aside for bad loans, reported Reuters.

The increase of profits at Wells Fargo had been strengthened by home refinancing. Wells Fargo is the fourth biggest bank in the United States. Over the past few quarters, many of its 89 other businesses did not show enough improvement to pick up the decline experienced by the US mortgage lender, reported Reuters.

The improvement in the economy had showed more people were able to pay their bills in the bank. This made Wells Fargo to release about USD900 million of reserves for its credit losses. The bank said last Friday, that lower write-offs of bad loans and lower company expenses increased profits.

Shares of Wells Fargo went down by 1.3% to USD40.89 in early trading.

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