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Wells Fargo CEO Tim Sloan took over the company last year after the false accounts scandal.
Time

Wells Fargo announced mixed financial results for the third quarter beginning Friday, but shares rose slightly in pre-market trading.(Photo: Spencer Platt / Getty Images)

Wells Fargo, still haunted by multiple scandals, announced a profit increase Friday in the third quarter, but did not meet the expectations of analysts.

Wells saw its profit jump from $ 4.5 billion in the third quarter of 2017 to $ 6 billion, although last year the bank had to set aside $ 1 billion for legal fees related to its mortgage practices prior to the financial crisis.

The San Francisco-based bank earned $ 1.13 a share in its last quarter, lower than the $ 1.17 expected by analysts polled by Zacks Investment Research.

The company's revenue increased slightly over the same period last year, reaching $ 21.9 billion.

In recent years, the bank has faced several investigations into practices, including opening accounts without client consent, billing unnecessary insurance policies to clients, and imposing unfair fees on clients. mortgage rates.

Wells announced last month its intention to reduce its workforce by 10% over the next three years. The bank, which employs about 265,000 people, announced in June that it would sell more than 50 retail stores in the Midwest and bring the number of its branches to about 5,000 by 2020.

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The country's largest mortgage lender said its net interest income had increased slightly to $ 12.6 billion from $ 12.5 billion in the same period last year. This is despite the rapid rise in interest rates, which would generally benefit a bank like Wells.

On Thursday, Freddie Mac, the mortgage buyer, said the 30-year fixed-rate mortgage rate had risen to 4.90 percent on average from 4.71 percent last week. This is the highest reference rate since April 2011. It was 3.91% a year ago.

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