Wells Fargo & Co.’s profits increased 11 percent in the first quarter as a result of growth in lending and a higher net interest margin, Reuters reported.

Net income rose to $2.24 billion, or 66 cents per share, from $2.02 billion, or 60 cents per share, a year earlier. Revenues rose 10 percent to $9.44 billion while operating expenses rose 9 percent to $5.53 billion. New mortgages rose 3 percent to $68 billion.

The results show that the fifth-largest U.S. bank has not been hit as hard as other lenders by the problems with subprime loans. However, the company’s chief credit officer, Mike Loughlin, said the bank is experiencing higher home equity losses and will have “higher but manageable losses” in that portfolio this year.

The nation’s seventh-largest bank, U.S. Bancorp, reported a decline in net income of 2 percent for the first quarter as it paid out more in interest and bought back some of its shares, the Associated Press reported. The bank earned $1.13 billion, or 63 cents per share, compared with $1.15 billion, or 63 cents per share, during the same period last year.