The US bank Wells Fargo reported an eleven percent drop in profit to 5.1 billion US dollars (4.7 billion euros) in the third quarter. The decline in interest income was the main issue, but the in-house investment bank was able to stabilize overall profit through an increase in fee income by over a third. This allowed Wells Fargo to exceed average analyst expectations, causing its stock price on the NYSE to temporarily rise by 6.64 percent to 61.59 US dollars.

Across the group, revenues fell by two percent in the third quarter to 20.4 billion US dollars. Despite the decline in net interest income, Wells Fargo significantly benefited from the performance of the investment bank, which offset the negative effects. Additionally, the bank reduced provisions for credit losses by eleven percent to just under 1.1 billion US dollars, which represented a solid risk provision compared to JPMorgan.

The strong performance of our investment bank has significantly helped to mitigate the impact of lower interest earnings," explained a spokesperson for Wells Fargo. This strategic focus on profitable business areas demonstrates how the company remains resilient despite adverse market conditions.

The positive results of the investment bank and efficient cost management have strengthened investor confidence, which is clearly reflected in the stock price. While interest rates remain under pressure, Wells Fargo demonstrates that diversifying sources of income is essential to remain stable in a volatile market environment.