Relive the excitement of the Patriots’ path to their fourth Super Bowl Championship with “Pumped”, a special commemorative book from The Boston Globe. Order now.

Wells Fargo’s profit up 13 percent; revenue slips

Third-quarter profit for Wells Fargo & Co., the biggest US mortgage lender, jumped 13 percent as a decline in revenue from mortgage lending was offset by reduced expenses and fewer soured loans.

Net income increased to $5.6 billion in the July-September period from $4.9 billion a year earlier. On a per-share basis, earnings were 99 cents, beating the 97 cents forecast by Wall Street.

Continue reading below

Third-quarter revenue dipped to $20.5 billion from $21.2 billion, coming in below the analysts’ forecast of $21.1 billion. The bank’s stock edged down 1 cent to close at $41.40.

Interest rates on US mortgages rose sharply in the spring and summer. That had a negative impact on Wells Fargo’s mortgage business. The San Francisco-based bank controls nearly one-third of the US mortgage market. Much of its lending business has been coming from mortgage refinancing, which was reduced by the spike in interest rates.

Wells Fargo funded $80 billion worth of mortgages in the third quarter, down from $139 billion a year earlier.

Fewer bad loans in an improving housing market cut Wells Fargo’s lending losses to $975 million from $2.4 billion in the third quarter of 2012.

The bank reduced expenses to $12.1 billion, down $153 million from the second quarter.

Loading comments...

Wake up with today's top stories.

Want each day's news headlines delivered fresh to your
inbox every morning? Just connect with us
in one of the following ways:
or
Please enter a valid email
BostonGlobe.com will never post anything without asking. Privacy Policy
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com