Wells Fargo, the biggest U.S. mortgage lender, reported a better-than-expected 11 percent rise in fourth-quarter profit as bad-loan provisions fell steeply, helping to make up for a big drop in mortgage lending.
Net income applicable to common shareholders rose to $5.37 billion, or $1.00 per share, from $4.86 billion, or 91 cents per share, a year earlier, the fourth-biggest U.S. bank said on Tuesday.
Analysts on average had expected earnings of 98 cents per share, according to Thomson Reuters I/B/E/S.
Provision for credit losses fell 80 percent to $363 million, helping to offset a 49 percent drop in mortgage income to $1.57 billion.
Wells Fargo's shares were down 0.3 percent at $45.35 before the opening bell on the New York Stock Exchange. (Click here to get the latest quotes for the company.)
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