Wells Fargo’s Income Increase 51 Percent
In the first quarter Wells Fargo’s income increase 51 percent because more people opened accounts with business and the bank customers took out more loans. A sharp decline in new mortgages caused Revenues fell as higher interest rates.
On Wednesday, The San Francisco bank said that it earned 67 cents per share after paying preferred dividends or $3.6 billion. In the first quarter of last year it compared with 45 cents a share, or $2.4 billion. The analysts surveyed by FactSet showed that the earnings were a penny better than the forecast. Wells Fargo giving a boost to its bottom line with released $1 billion from its reserves for loan losses in the quarter as defaults declined.
The income is lower than mortgage fees make revenue fell to $20.3 billion from $21.5 billion. Wells Fargo’s home loan business aggrieved by a sharp rise in mortgage rates. The Rates jumped to 4.84 percent in March from 4.35 percent in September for 30-year mortgages. In the previous quarter new mortgage loans at Wells got $128 billion but at this time fell to $84 billion. When interest rates fell to record lows a sharp increase in mortgage refinancing in the third and fourth quarter, Wells Fargo said. Since a drop in refinancing, the steep rise in rates.