NEW YORK – Wells Fargo & Co., the No. 4 U.S. bank, on Tuesday said third-quarter profit rose 12 percent, but fell short of analyst forecasts as fewer people took out home mortgages.
The San Francisco-based company, which is also the largest U.S. mortgage lender, said net income rose to $1.75 billion, or $1.02 per share, from $1.56 billion, or 92 cents per share, a year earlier. Revenue was little changed at $7.32 billion.
Analysts polled by Reuters Estimates on average forecast profit of $1.06 per share on revenue of $7.46 billion.
Wells Fargo said home mortgage revenue fell $623 million, or 40 percent, from a year earlier. As long-term interest rates rose, mortgage originations tumbled $93 billion, or 58 percent, to $68 billion. Applications fell 39 percent to $83 billion, and the pipeline of mortgages yet to close fell 11 percent to $55 billion.
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