Wells Fargo’s earnings edge up as revenue rises

NEW YORK (AP) — Wells Fargo & Co. reported a slightly higher fourth-quarter profit as the country’s biggest mortgage lender generated more income from interest payments.

Quarterly net income rose to $5.38 billion from $5.37 billion a year earlier, the San Francisco-based bank said Wednesday. That’s after taking out dividends for preferred stock. On a per-share basis, adjusted earnings worked out to $1.02.

The earnings results matched Wall Street’s expectations, according to the data provider FactSet.

Revenue rose 4 percent to $21.44 billion in the three months ending in December, which narrowly topped forecasts. Analysts expected $21.24 billion in revenue, according to FactSet.

In a statement accompanying the results, John Shrewsberry, the bank’s chief financial officer, said making more loans helped boost revenue. Total loans rose 5 percent to $862.55.

For all of 2014, Wells Fargo’s adjusted earnings climbed 4 percent to $21.82 billion, while revenue crept up 1 percent to $84.35 billion.

Shares in Wells Fargo sank $1.15, or 2 percent, to $50.70, in off-hours trading. But Wells Fargo’s stock has been on a tear, climbing 14 percent over the year. That’s better than the Standard & Poor’s 500 index’s gain of 10 percent over the same stretch. Ranked by market value, Wells Fargo is now the biggest U.S. bank.

 

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

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