NEW YORK (AP) – Consumer banking giant Wells Fargo said its second-quarter earnings fell 3 percent from a year ago as the bank continues to feel pressure from low interest rates. The results mostly met analysts’ expectations.
Wells Fargo on Friday reported second-quarter earnings of $5.56 billion, down from $5.72 billion in the same period a year earlier. On a per share basis, the San Francisco-based bank earned $1.01 per share, down from $1.03 per share a year earlier.
The results mostly met analysts’ expectations. Analysts surveyed by FactSet expected $1.01 per share, while 12 analysts surveyed by Zacks Investment Research were looking for $1.02 per share.
Wells Fargo continued to grow aggressively and expand its lending in all of its businesses, from industrial and commercial loans to credit cards and auto lending. Total loans were up 8 percent to $957.2 billion.
The nation’s historically low interest rates continue to pressure the bank. Wells is particularly affected by low rates because it makes much of its profit from making loans to individuals and businesses and does not have a significant trading or investment banking operation, unlike other major U.S. banks such as JPMorgan Chase. On Thursday JPMorgan reported better results than analysts were expecting thanks to a big gain in trading.