Jan 13 Wells Fargo & Co, the largest
U.S. mortgage lender, reported its fifth straight decline in
quarterly profit on Friday as it tries to recover from a
The San Francisco-based bank has been dealing with multiple
lawsuits and a sharp drop in account openings after it settled
with regulators in September over charges that its employees
created 2 million accounts without customers' consent.
Net income applicable to shareholders fell 6.4 percent to
$4.87 billion, or 96 cents per share, in the fourth quarter
ended Dec. 31, from $5.20 billion, or $1.00 per share, a year
Analysts on average had expected the bank to earn $1.00 per
share, according to Thomson Reuters I/B/E/S. It was not
immediately clear if the reported figures were comparable.
The bank set aside $805 million to cover potential loan
losses, down 3.1 percent from a year earlier.
The results were for the first full quarter under Chief
Executive Timothy Sloan, who took over after John Stumpf
resigned in the wake of the scandal.
Bank of America Corp, the second-largest U.S. bank,
kicked off the quarterly earnings period for big U.S. lenders
earlier on Friday, announcing a 46.8 percent rise in profit.
(Reporting by Nikhil Subba in Bengaluru and Dan Freed in New
York; Editing by Saumyadeb Chakrabarty)