Wells Fargo & Co., the world's most valuable bank, posted second-quarter profit that matched analysts' estimates as the firm increased loans and collected more fees from credit cards.
Net income slid 2.8 percent to $5.6 billion, or $1.01 a share, from $5.72 billion, or $1.03, a year earlier, the San Francisco-based company said Friday in a statement. The average estimate of 30 analysts surveyed by Bloomberg was for profit of $1.01 a share. Revenue rose about 4 percent to $22.2 billion, in line with analysts' estimates.
"Wells Fargo's second quarter results demonstrated our ability to generate consistent performance during periods of economic, capital markets and interest rate uncertainty," Chief Executive Officer John Stumpf said in the statement.
Stumpf has sought to keep costs in check while amassing more deposits and expanding the bank's loan portfolio with by purchasing assets from firms including General Electric Co. The bank has used derivatives to lock in higher income by converting floating rates into fixed payments as the Federal Reserve delays raising interest rates.
Wells Fargo's shares dropped 10 percent this year through Thursday, compared with the 8 percent decline of the 24-company KBW Bank Index.
JPMorgan Chase & Co., the largest U.S. bank by assets, posted second-quarter profit Thursday that beat analysts' estimates as fixed-income trading revenue and loan growth increased. Net income dropped 1.4 percent to $6.2 billion, while revenue climbed 2.8 percent to $25.2 billion. Bank of America Corp., Goldman Sachs Group Inc. and Morgan Stanley are scheduled to report results next week.
