Wells Fargo Posts Profit Gain as Stumpf Leans on Reserves

Wells Fargo & Co., the largest U.S. home lender, sought to assure investors its other businesses can make up for flagging mortgage sales after posting a 13 percent gain in profit that partly relied on tapping loan-loss reserves.

Net income advanced in the third quarter to a record $5.58 billion, or 99 cents a share, from $4.94 billion, or 88 cents, a year earlier, the San Francisco-based company said today in a statement. The bank reclaimed $900 million from loan-loss reserves while mortgage banking revenue plunged 43 percent.