Wells Fargo posted record profits on Friday that beat Wall Street's expectations, but the company's revenue fell short of what analysts had predicted.
Fueled by a surge in mortgage loans, Wells Fargo earned $4.94 billion on revenue of $21.21 billion during the third quarter that ended in September.
Compared to the year-ago July-September quarter, profits soared 21.7 percent higher and revenue rose 8 percent, the bank reported.
"By focusing on earning all of our customers' business and providing outstanding service, we continued to generate growth across our diversified set of businesses," said John Stumpf, Wells Fargo's chief executive officer. "We saw continued strength in our mortgage and deposit businesses."
San Francisco-based Wells Fargo originated $139 billion in residential mortgages during the third quarter. That was up 56 percent from the year ago third quarter, and 8 percent from the second quarter.
Mortgage banking income totaled $2.81 billion, up 53.1 percent from the year ago quarter.
"The economic and interest rate environments continue to present challenges for us and our industry," said Tim Sloan, the bank's chief financial officer.
Wells Fargo posted earnings of 88 cents a share, slightly ahead of the 87 cents prediction by Wall Street. Revenue was slightly below what analysts had projected.
Despite the challenges of a tough economy and low interest rates, "Our diversified model and focus on our customers continued to produce strong quarterly results," Sloan said.
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