Wells Fargo Gets The Profit RiseMd Noman Siddique (Author) Published Date : Jul 13, 2014 01:35 IST
The United States largest Bank Wells Fargo gets a lift in the second quarter after the bank gets the rise of 3%, thanks to the economic boost recently.
Wells Fargo is heavily known for their home loan facilities where the bank is engaged with one out of six home loans in US as they had the profit of $5.7bn quarterly.
The largest bank was also associated with mortgages where Wells Fargo lent $47bn in the March to June period which is more than the previous quarter which was $36bn.
The US housing market has been highly benefitted by the bank as it has the contribution in the sector and for the reason the recent result of the bank has been watched very closely.
According to the chief executive of the bank John Stumpf the result was a reflection of an improved economy with the strong credit quality.
Though the bank gets the profits rise the share price of Wells Fargo saw the different side as it loses around 1% which is $21.07bn a 1.5% fall from before.
Wells Fargo has been impressive on their mortgage lending in this quarter however it is still not good enough comparing to the previous year.
According to a banking analyst Ralph Silva, Wells Fargo results are showing a steadying of mortgage activity after a period of bargain hunting.
Mortgage growth could never continue as quickly as it had been in the US, we are seeing a more reasonable mortgage level, which will be lower than previous quarters.
Wells Fargo Gets The Profit Rise