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Wells Fargo profit rises on reserve release boost By Reuters

© Reuters. FILEPHOTO: The Wells Fargo logo in New York City (USA), January 10, 2017 REUTERS/Stephanie Keith

(Reuters) – Wells Fargo (NYSE:) & Co reported a rise in third-quarter profit on Thursday as the bank released funds set aside to cover soured loans brought on by the COVID-19 pandemic.

Since 2018, the fourth largest U.S. bank was operating under consent orders by the Federal Reserve and two U.S financial regulators. The Fed has also capped its assets at $1.95 billion.

Lender reported that the allowance for credit losses decreased $1.7 billion during the third quarter.

The net income for the third quarter ended September 30th was $5.12 Billion, which is $1.17 per share. This compares with $3.22 Billion, or 70c per share, one year ago.

According to Refinitiv’s IBES estimates, analysts had on average expected profits of 99 cents per share.

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Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.