Wells Fargo (WFC) posted a record third-quarter profit of $5.6 billion on Friday, which is drastically up from $4.8 billion for the same time last year. But despite the increases, residential mortgage originations tumbled, falling to $80 billion for the third quarter, down from $112 billion in the second quarter. Per Forbes:
Earnings per diluted share were .99 compared with .88 cents last year. Analysts were expecting Wells to report .97 cents per share.
Wells is the largest mortgage player in the nation. The bank said noninterest income was $9.7 billion, compared with $10.6 billion in second quarter 2013, driven primarily by lower mortgage refinance volume and reduced gain on sale margins. Mortgage banking noninterest income was $1.6 billion, down from $2.8 billion in second quarter 2013.
Chairman and CEO John Stumpf commented:
“As our economy continues to transition to higher interest rates, our diversified business model and strong risk discipline contributed to record earnings per share along with continued strength in return on assets, return on equity and capital.”