Wells Fargo profit falls on higher expenses, loan-loss reserves

[July 14, 2015] (Reuters) - Wells Fargo & Co, the largest U.S. mortgage lender, reported a drop in quarterly profit for the second time in a row as it set aside more money to cover bad loans and its expenses rose.

Net income applicable to common shareholders fell to $5.36 billion, or $1.03 per share, in the second quarter ended June 30 from $5.42 billion, or $1.01 per share, a year earlier.

Analysts on average had expected a profit of $1.03 per share, according to Thomson Reuters I/B/E/S.

Wells Fargo's provision for credit losses rose 38.2 percent to $300 million, while non-interest expenses rose 2.3 percent to $12.47 billion.

(Reporting by Neha Dimri and Anil D'Silva in Bengaluru; Editing by Kirti Pandey)
 

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