Wells Fargo profit falls buy loan growth buoys investors

By MATT OTT
AP Business Writer

Wells Fargo, the nation’s largest mortgage lender, saw its second-quarter revenue and profit decline as rising interest rates pushed people out of the housing market. The San Francisco bank earned $3.1 billion in the period, or 74 cents per share, coming up short of the 80 cents per share analysts expected. Revenue was $17 billion, also below Wall Street projections. Investors appeared less concerned with the bank’s topline numbers and more impressed with an 8% increase in loan balances, thanks to growth in consumer and corporate lending and new credit card products. Wells Fargo shares climbed 7%.