Wells Fargo & Co.'s third-quarter earnings rose 3.2% to a record as the banking giant saw its credit-loss provisions decline significantly and revenue increase.
"Earnings and growth were broad-based, with all business segments contributing to our record net income," said Chief Financial Officer Howard Atkins.
Wells has posted mostly better results of late, citing improving quality as it sets aside less to cover loan losses. Most fellow giant banks have posted lower revenue this quarter amid ongoing economic uncertainty and a pullback in activity such as trading.
The company reported a profit of $3.34 billion, or 60 cents a share, compared with $3.24 billion, or 56 cents a share, a year earlier. Shares outstanding rose 12% from a year earlier. Revenue fell 7.1% to $20.87 billion.
Analysts polled by Thomson Reuters most recently forecast earnings of 55 cents on $20.95 billion in revenue.
Credit-loss provisions were $3.44 billion, down from $6.11 billion a year earlier and $3.99 billion in the prior quarter. Net charge-offs, or loans lenders don't think are collectible, fell to 2.14% of average loans from 2.5% and 2.33%, respectively. Nonperforming assets were 4.59% of total loans, up from with 2.93% and 4.35.
Shares fell 0.7% to $24.35 premarket. The stock as of Tuesday's close had fallen 19% in the past year.
