Wells Fargo posts higher profit, revenue misses target
Stock falls 3.3. percent in early trading
Higher third-quarter earnings were reported Friday by Wells Fargo, but the fourth largest U.S. bank missed analysts' revenue target and its stock fell 3.3 percent in early trading.
San Francisco-based Wells Fargo, with bank and financial services branches in Eastern Iowa, said its net income for the quarter that ended Sept. 30 rose 22 percent to a record $4.9 billion, or 88 cents per share, from $3.84 billion, or 72 cents per share, a year ago.
Overall revenue rose 8 percent to $21.21 billion, slightly lower than the $21.47 billion analysts expected. Wells' stock fell $1.07, or 3 percent, to $34.11 in early trading.Wells Fargo, the largest U.S. home lender, said its mortgage banking revenue soared more than 50 percent from a year ago to $2.8 billion. The bank said decided to hold onto $9.8 billion in mortgages it would have been able to sell to Fannie Mae and Freddie Mac, forgoing $200 million in fee income.