In the business including Wells Fargo's private banking arm, noninterest income rose but interest income took a hit in the quarter. Total client asset rose.

Wells Fargo reported last Friday that its second-quarter 2024 net income slipped 1 per cent year-on-year to $484 million, affected by a 10 per cent fall in net interest income, higher noninterest costs and provision for credit losses.

The segment of the bank, which includes private banking, said noninterest income rose 12 per cent to $2.952 billion; net interest income fell to $906 million; noninterest expenses rose 7 per cent to $3.193 billion. 

Total client assets rose 10 per cent on a year ago to $2.2 trillion, Wells Fargo said in a statement. 

Across the entire Wells Fargo group, net income fell to $4.91 billion from $4.938 billion a year before. Total revenue rose to $20.689 billion from $20.533 billion; provision for credit losses fell to $1.2365 billion from $1.713 billion; noninterest expense rose to $13.293 billion from $12.987 billion. 

The bank’s Common Equity Tier 1 ratio – a standard international measure of capital “shock absorber” – was 11 per cent, up from 10.7 per cent a year earlier. 

“Our capital position remains strong and we continue to use it to support our customers while also prudently returning excess capital to our shareholders. We repurchased over $12 billion of common stock during the first half of this year and, as we previously announced, we expect to increase our third quarter common stock dividend by 14 per cent, subject to approval by the company’s board of directors at its regularly scheduled meeting later this month.” Charlie Scharf, CEO, said.