Wells Fargo the biggest U.S. mortgage lender, reported a 13 percent rise in third-quarter profit, but its mortgage banking income fell sharply as the refinancing boom began to fade.
Net income applicable to common shareholders rose to $5.32 billion, or 99 cents per share, from $4.72 billion, or 88 cents per share, a year earlier.
Analysts on average had estimated that Wells Fargo would earn 97 cents per share, according to Thomson Reuters I/B/E/S.
Wells Fargo made $80 billion in home loans, down from $139 billion a year earlier.
Mortgage banking income fell 43 percent to $1.61 billion due to fewer loans as well as diminished gains on selling mortgages to investors.
After the earnings announcement, the company's shares initially rose by about a percent in pre-market trading, but then retreated. (Click here to track the company's shares following the report.)