Wells Fargo & Co (NYSE:WFC, ETR:NWT) stock jumped 6.4% after the financial services firm reported stronger-than-expected results for the third quarter.
Net income of $5.6 billion, or $1.66 per diluted share, surpassed Wall Street expectations of $1.55 per share.
Revenue rose to $21.44 billion, above analyst projections of $21.15 billion, driven by higher net interest income and broad-based fee income growth in both consumer and commercial segments.
Noninterest expense for the quarter was $13.85 billion, while provision for credit losses fell to $681 million from $1.07 billion a year earlier.
Average loans grew to $928.7 billion, with Consumer Banking and Lending rising 3% and Corporate and Investment Banking up 4% year-over-year.
Deposits were largely steady at $1.34 trillion, with notable growth in Wealth and Investment Management, which rose 18% from a year ago.
Wells Fargo CEO Charlie Scharf highlighted the bank’s strong performance and strategic progress.
“The momentum we are building across our businesses drove strong financial results in the third quarter with net income and diluted earnings per share both up from a year ago and the second quarter,” Scharf said.
Scharf also noted resilient client activity despite economic uncertainty, citing increases in debit and credit card spending, strong auto loan originations, growth in commercial loan balances, and higher fees from investment banking and trading.