Wells Fargo earnings slip, but mostly meet expectations

Consumer banking giant Wells Fargo said Friday that its second-quarter earnings fell 3 percent from a year ago as the San Francisco bank continues to feel pressure from low interest rates.

“Wells Fargo’s second-quarter results demonstrated our ability to generate consistent performance during periods of economic, capital markets and interest rate uncertainty,” said Wells Fargo CEO and Chairman John Stumpf in prepared remarks.

Wells Fargo continued to grow aggressively and expand its lending in all of its businesses, from industrial and commercial loans to credit cards and auto lending.

Wells is particularly affected by low rates because it generates much of its profit from making loans to individuals and businesses, and does not have a significant trading or investment banking operation, unlike other major U.S. banks such as JPMorgan Chase.

Nearly all of that increase came from Wells’ commercial and industrial loan portfolio, which includes its oil and gas loans.