However, its mortgage banking income declined in Q2. The bank’s home lending division was down 5% quarter over quarter and 3% year over year to $823 million, reflecting lower net interest income due to decreased loan balances. This figure has fluctuated for Wells Fargo in recent quarters.
The bank saw positive movement in other areas, with non-interest income increasing by 19%, driven by higher trading revenue and investment banking fees.
Net interest income decreased by 9%, primarily due to higher interest rates impacting funding costs. However, non-interest income increased by 19%, driven by higher trading revenue, increased investment banking fees, and improved results from venture capital investments.
Wells Fargo CEO Charlie Scharf commented on the company’s financial performance, highlighting the growth in fee-based revenue offsetting the decline in net interest income.
“The investments we have been making allowed us to take advantage of the market activity in the quarter with strong performance in investment advisory, trading, and investment banking fees,” Scharf said. “Credit performance was consistent with our expectations.”
