Wells Fargo & Company’s community banking segment has posted a net income of $3.69bn for the third quarter of 2015, up 6.5% as compared to $3.46bn in the year ago quarter.
For the quarter ended 30 September 2015, total revenue increased 6.29% to $13.62bn from $12.81bn a year ago, driven by higher net interest income, market sensitive revenue, primarily gains from sale of equity investments, debit and credit card fees, and trust and investment fees.
The division’s noninterest expense stood at $7.22bn, an increase of 2.4% from $7.05bn in the prior year, owing to higher personnel costs and a donation to the Wells Fargo Foundation, partially offset by lower foreclosed assets and travel and entertainment expenses.
The unit’s provision for credit losses surged 41.5% to $658m from $465m a year earlier, as the $74m improvement in net charge-offs was more than offset by a $267m lower reserve release.
Wells Fargo’s community banking segment offers diversified of diversified financial products and services for consumers and small businesses such as checking and savings accounts, credit and debit cards, and auto, student, and small business lending.
The division also offers investment, insurance and trust services in 39cstates and D.C., along with mortgage and home equity loans in all 50 states and D.C. through its Regional Banking and Wells Fargo Home Lending business units.
Overall, the banking group posted a net income of $5.8bn, up 1.22% from $5.73bn in the third quarter of 2014. Revenue rose 3.3% to $21.9bn from $21.2bn a year ago.
Wells Fargo chairman and CEO John Stumpf said: "Wells Fargo’s strong third quarter results reflected the ability of our diversified business model to generate consistent financial performance in an uneven economic environment while continuing to meet our customers’ financial needs.
"Compared with a year ago, we grew loans, deposits and capital, and returned more capital to shareholders through dividends and share buybacks. Our balance sheet and credit results remained strong and our 265,000 team members continue to focus on helping our customers succeed financially."