Wells Fargo profit rose 17 percent to $6.4bn as charge-offs kept falling

Wells Fargo's second-quarter results were reported by John Reosti at American Banker. Net income rose 17 percent from a year earlier, to $6.4bn, or $2.00 per diluted share, against a $1.72 consensus. Net interest income rose 5 percent, to $12.3bn. The net charge-off rate fell to 0.34 percent of average assets, down 10 basis points from a year earlier. Consumer charge-offs fell 12 percent, to $876m. Commercial loans rose 16 percent, to $636.6bn. Net interest margin was 2.43 percent, 25 basis points narrower than a year earlier and 4 basis points narrower than the first quarter. Chief Executive Charlie Scharf told analysts the bank remains on track for its $50bn full-year spread income target.