Wells Fargo & Co., the fourth-largest U.S. bank by assets, posted a higher quarterly profit, beating analysts’ estimates, as it dipped into funds previously set aside for bad loans, Reuters reported. The company said second-quarter net income was $3.73 billion, up 30 percent from $2.88 billion a year earlier. Earnings per share rose to 70 cents from 55 cents. Analysts, on average, had expected earnings of 68 cents per share, according to Thomson Reuters. The results benefited from the company’s decision to draw down reserves against loan losses by $1 billion during the quarter. Net loan charge-offs declined to $2.84 billion from $3.21 billion in the first quarter and $4.49 billion in 2010’s second quarter.