(Bloomberg) -- Wells Fargo, the world's largest bank by market value, posted fourth-quarter profit that beat analysts' estimates as revenue from lending and securities investments increased.
Net income was unchanged at $5.71 billion from a year earlier, the San Francisco-based lender said Friday in a news release. That translated to an earnings per share of $1.03. The average estimate of 29 analysts surveyed by Bloomberg was for $1.02.
Chief Executive Officer John Stumpf has amassed deposits and built the bank's loan portfolio with strategic acquisitions as he waited for the Federal Reserve to increase interest rates. With the central bank raising its benchmark measure in December for the first time in nine years, analysts including those at Goldman Sachs Group Inc. expect the lender to benefit more than many competitors.
Revenue climbed about 1% to $21.6 billion in the quarter, with $11.59 billion coming from net interest income and $10 billion from fees, including those generated by the mortgage banking, and trust and investment businesses. Expenses fell 2% to $12.4 billion.
JPMorgan Chase, the largest U.S. bank, said Thursday that fourth-quarter net income climbed 10% to $5.43 billion as expenses from litigation and employee compensation shrank, while Citigroup Inc. on Friday posted profit that beat analysts' estimates as it generated more revenue from investment banking and a portfolio of unwanted assets. Bank of America Corp., Morgan Stanley and Goldman Sachs will report next week.
