Wells Fargo & Co today posted a quarterly profit that fell short of analysts' estimates, as a $13 billion drop in new mortgage borrowing offset the bank's efforts to cut costs. 

Wells Fargo has been struggling to rebuild its reputation with customers after a series of scandals, fines and regulatory probes over the last two years dented its brand. 

Rising interest rates, which have brought much-needed relief for banks that were scrambling to boost their profits, have also on the other hand weighed on borrowers' ability to take out loans, hurting loan growth. 

Mortgage rates are at a multi-year high. 

Total loans at the fourth largest US bank by assets fell 1% to $942.3 billion.

Its net interest margin, a measure of how much a bank earns on its investments, rose to 2.94% from 2.86% the same time last year. 

Total revenue rose 0.4% to $22 billion, with only community banking - the area most closely tied to the 2016 sales scandal - showing growth in revenue. 

Total non-interest expenses fell 4.1% to $13.7 billion. 

The bank's chief financial officer John Shrewsberry has vowed to reduce about $3 billion in expenses by 2020.

Well Fargo said its net income applicable to common stockholders rose to $5.45 billion, or $1.13 per share, in the quarter ended September 30, from $4.13 billion or 83 cents per share a year ago. 

On an adjusted basis, the company earned $1.16 per share, missing analysts' estimates of $1.17, according to I/B/E/S data from Refinitiv.

Peers JPMorgan Chase also reported higher-than-expected quarterly profit today on gains from higher interest rates and a growth in loans, while Citigroup's profit rose 12% on lower taxes and a decrease in expenses.