Wells Fargo reports 17% Q2 net income increase

• Wells Fargo reported a second-quarter net income of $6.41 billion that significantly beat Wall Street consensus estimates.
• The banking firm generated $22.62 billion in total revenue driven by a 5% increase in net interest income.
• The company expects continued growth from its investment banking division to support future balance sheet strength.

Wells Fargo (NYSE:WFC) reported a 17% increase in net income to $6.41 billion for the second quarter.

The bank posted earnings per share of $2, significantly beating the Wall Street consensus estimate of $1.72.

The financial institution generated $22.62 billion in quarterly revenue, successfully topping market expectations of $21.87 billion.

The positive financial performance was driven by a 5% increase in net interest income alongside higher investment banking fees.

Following the announcement, Wells Fargo's share price was up at $88.46.

The company continues to capitalize on the recent removal of a regulatory asset cap to unlock balance sheet growth.

The firm also recently passed its federal stress test and announced an 11% quarterly dividend increase for shareholders.