Updated: January 14, 2014 11:10AM
Wells Fargo says its fourth-quarter profit rose 11 percent as increased interest income helped offset a steep drop in mortgage lending.
The biggest U.S. mortgage lender reported Tuesday that net income after dividend payments on preferred stock rose to $5.4 billion in the October-December period from $4.9 billion a year earlier. On a per-share basis, earnings were $1.00, beating the 99 cents forecast by Wall Street.
Revenue fell to $20.7 billion from $21.9 billion.
Rising rates on U.S. mortgages continued to have a negative impact on Wells Fargo’s mortgage business in the fourth quarter. The San Francisco-based bank funded $50 billion worth of mortgages in the period, down from $125 billion a year earlier.