EP Award Promo

Wells Fargo profits cut in half as Des Moines-based mortgage business craters


Des Moines Register: Driven by a steep drop in its Des Moines-based home lending business, Wells Fargo & Co. saw profits cut nearly in half in its most recent quarter. The banking giant today reported net income of $3.12 billion for the period of April, May and June. That’s down from the $6.04 billion that Wells Fargo earned during the same period last year. A drop in home lending was the biggest driver of the change, as the San Francisco-based bank recorded $972 million in profits during the quarter, down 53% from $2.07 billion during the same period in 2021. Mortgage originations have dropped significantly this year as the Federal Reserve has increased interest rates to slow the pace of inflation. From January through March, the company reported a 33% year-over-year drop in home lending revenue. The downturn in the segment has particularly hurt Wells Fargo’s Central Iowa employees. The company has laid off about 200 from the unit, the metro’s largest private employer, since April.

Facebook Notice for EU! You need to login to view and post FB Comments!

visionbank web 030123 300x250