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The bank earned $4.94 billion, up 57% from the year-earlier quarter. That amounts to $1.25 per share, topping the $1.16 that analysts polled by FactSet had expected.
Revenue rose 20% from a year earlier to $20.53 billion. Analysts expected $20.11 billion.
One item that subtracted from profits: The bank set aside $949 million to cover soured loans, largely in the struggling commercial real estate sector.
The bank made more loans and charged higher interest on them, boosting its net interest income by 29% from a year earlier to $13.16 billion. The bank also increased its guidance for the full, saying it expects net interest income to rise 14% in 2023.
Noninterest income, which included more fees from the bank’s trading division, rose 8% to $7.37 billion.
The bank, which has been working to control costs, said noninterest expenses rose 1% from a year earlier to $12.99 billion.
The bank paid an average rate of 1.63% on its interest-bearing deposits, up from 1.22% at the end of March. Total interest expense rose by 29% from the first quarter to $7.67 billion.
Wells Fargo said it charged off $764 million of loans in the second quarter, versus $344 million a year earlier. Charge-offs rose in its commercial real estate loan book as well as credit cards.
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