Net interest income was up 12 per cent driven by higher deposit and loan balances, as well as lower deposit costs, compared with the same time the previous year. Noninterest income also rose 12 per cent on higher investment advisory fees driven by an increase in market valuations.

Noninterest expense increased 9 per cent, compared with the previous year, due to higher revenue-related compensation expense, partially offset by the impact of efficiency initiatives.

Average wealth and investment deposits stood at $108.7 billion at end-September, a slight dip on a year earlier. 

Overall, Wells Fargo reported net income of $6.0 billion, or $1.87 per diluted share.

“Our third quarter results reflect broad-based growth, higher earnings, and stronger returns. Diluted earnings per share increased to $1.87 in the third quarter, up 13 per cent from a year ago,” chairman and chief executive officer, Charlie Scharf, said.

“Wealth and Investment Management revenue grew 12 per cent versus a year ago, Commercial Banking grew 6 per cent, Consumer Banking and Lending grew 5 per cent, and Corporate and Investment Banking revenue increased 3 per cent. These increases were partially offset by lower revenue from our venture capital investments and lower lease income following the sale of our rail car leasing business in the first quarter,” Scharf added. 

“Key growth metrics across our businesses showed continued strength. Wealth and Investment Management client assets grew 11 per cent, investment banking and markets fees from Commercial Banking clients grew 25 per cent, and within Corporate and Investment Banking, overall banking revenue increased 8 per cent, including M&A revenue increasing 30 per cent and both equity capital markets and investment grade underwriting fees increasing 33 per cent. While markets revenue was relatively stable from a year ago, equities revenue grew 21 per cent,” Scharf continued. 

The lender's Common Equity Tier 1 ratio fell to 10 per cent at the end of September from 11 per cent from a year before. Return on equity rose to 13.8 per cent from 12.8 per cent. The bank repurchased $2.5 billion of common stock in the quarter.