Wells Fargo profit rises on higher interest income from customers
2023.07.14 07:12
© Reuters. Wells Fargo Bank branch is seen in New York City, U.S., March 17, 2020. REUTERS/Jeenah Moon
(Reuters) -Wells Fargo’s profit rose in the second quarter as it earned more in interest payments from customers.
Net income rose to $4.94 billion, or $1.25 per share, for the three months ended June 30, compared with $3.14 billion, or $0.75 per share, a year earlier, the lender said on Friday.
After the Federal Reserve raised interest rates to tame inflation, banks have benefited by charging customers more to borrow money.
Fed Chair Jerome Powell signaled late last month that the central bank will likely resume its rate-hiking campaign after leaving the policy rate unchanged in June.
Wells Fargo (NYSE:)’s net interest income climbed 29% to $13.16 billion in the second quarter.
The lender is still working to fix problems from a six-year-old scandal over its sales practices that led to hefty fines and regulatory punishments, including a cap on its assets imposed by the Fed.
The bank increased its dividend alongside rivals late last month, after they sailed through the Fed’s annual health check. The results showed large lenders have enough capital to weather a severe economic downturn.
