U.S. lender Wells Fargo (WFC) has reported that its first-quarter profit rose 14% from a year earlier despite a decline in its net interest income.
The New York-based bank reported earnings per share (EPS) of $1.26 U.S. versus $1.11 U.S. that was forecast among analysts.
Revenue in the quarter totaled $20.86 billion U.S. compared to $20.20 billion U.S. that was expected on Wall Street.
Wells Fargo said that its net interest income, a key measure of what banks earn from their loans, fell 8% in Q1 due to the impact of higher interest rates on funding costs.
Additionally, customers at Wells Fargo switched their capital into higher yielding deposit products during the quarter, further hurting its net interest income.
During Q1, Wells Fargo set aside $938 million U.S. as provisions for credit losses.
The bank said the provision included a decrease in the allowance for credit losses that was driven by commercial real estate and motor vehicle loans.
Wells Fargo also disclosed that it repurchased $6.1 billion U.S. of its common stock during the quarter.
The stock of Wells Fargo has increased 45% in the last 12 months and currently trades at $56.69 U.S. per share.
