Sign at the entrance to a Wells Fargo bank in Manhattan.
Erik Mcgregor | Lightrocket | Getty Images
Wells Fargo‘s profit rose in the third quarter on higher income from interest payments.
The fourth-largest U.S. lender’s net income was $5.59 billion, or $1.66 per share, in the three months ended September 30, it said on Tuesday. That compares with $5.11 billion, or $1.42 per share, a year earlier.
U.S. banks have benefited from the Federal Reserve’s rate cuts, which have eased deposit costs — the interest paid to customers for holding their savings.
Net interest income — the difference between what the bank earns on loans and pays out on deposits — rose 2% to $11.95 billion in the quarter from a year earlier.
This story is developing. Please check back for updates.
