By Peter Rudegeair
(Reuters) - Wells Fargo & Co
The San Francisco-based bank's net income applicable to common shareholders rose to $5.41 billion, or $1.02 per share, in the quarter, in line with analysts' expectations. That was up from $5.32 billion, or 99 cents per share, a year earlier.
Mortgage lending rose by $1 billion from the second quarter to $48 billion, though new home loans were 40 percent below the level in the third quarter of 2013. Income from mortgage banking rose 2 percent to $1.63 billion as Wells Fargo earned bigger profits from selling home loans to investors.
A drop in refinancing activity beginning in the summer of 2013 caused mortgage banking income to plunge for four consecutive quarters.
Overall revenue was up 3.6 percent to $21.21 billion on a 2 percent increase in net interest income and a 6 percent rise in fee income, most of which came from higher trust and investment fees.
Wells Fargo's loan portfolio grew by 3.7 percent to $838.9 billion in the quarter from the same period a year earlier, led by a 13 percent increase in commercial and industrial loans. Excluding balances the bank is liquidating, loans grew 7 percent from a year earlier.
Expenses were up 1.2 percent to $12.2 billion as legal costs and foreclosure expenses increased.
Shares fell 1.3 percent to $49.53 in premarket trade.
(Reporting by Peter Rudegeair in New York and Tanya Agrawal in Bangalore; Editing by Ted Kerr and Jeffrey Benkoe)
