Wells Fargo profit rises as credit-loss provision climbs

Wells Fargo reported third-quarter net income of $5.95bn, up 6% from a year earlier. Earnings per share rose to $1.87 from $1.66, while revenue increased 2% to $21.87bn. Average loans and deposits each grew 11%.

Credit costs increased. The bank booked a $1.03bn provision for credit losses, up 51% from $681m a year earlier. That provision includes changes in expected losses, rather than only loans already written off. Net charge-offs were $983m, up 3%.

Expenses fell 1% to $13.74bn, and results included $170m in discrete tax benefits tied to prior-period matters. Wells Fargo said the figures remain preliminary until its quarterly filing.