Wells Fargo today posted record earnings in the third quarter as higher fees and trading profits boosted the bank's revenue.
Wells, the biggest mortgage lender in the US, expanded its loan portfolio by increasing loans to consumers.
More homeowners also refinanced at record-low mortgage rates.
The bank's net income in the quarter to the end of September 30 rose 23%, to $4.72 billion from $3.84 billion the same time last year.
That amounted to 88 cents per share, a cent higher than the average estimate of analysts.
Wells earned 72 cents per share in last year's third quarter. Overall revenue rose 8% to $21.21 billion, slightly lower than analysts expected.
Net interest income, which includes interest on loans, edged up 1% to $10.66 billion from $10.54 billion. Loans to consumers rose 4% from the prior quarter, to $335.28 billion from $322.30 billion in the three months to the end of June.
Corporate loans shrank modestly. More people deposited their money at Wells, boosting core deposits by 7% from a year earlier, $895.4 billion from $836.8 billion a year earlier. With more deposits on hand, banks have a stronger capital position and can lend more easily.
Wells, based in San Francisco, appears more confident that those loans will be repaid. It released $200m that it had set aside earlier to cover possible loan losses.
