Wells Fargo: profit rises; provisions for bad loans drop

(CercleFinance.com) - Wells Fargo, the largest mortgage lender in the US, said its fourth-quarter profit rose by 4%, helped by lower provisions for credit losses.


The bank reported a profit of nearly three billion dollars, or 0.64 dollar per share, compared to 2.9 billion dollars, or 0.60 dollar per share, a year ago.

Analysts were expecting earnings of 0.60 dollar per share.

Provisions for credit losses decreased by 823 million dollars, mostly due to a 757 million dollar reserve release due to the sale of its student loan portfolio, as well as lower net charge-offs.

Revenues fell to 17.9 billion dollars from 19.9 billion dollars in the previous year.

Shares in the San Francisco-based company fell 2.5% in pre-market trading on Friday.

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