Wells Fargo Tops Expectations, But Revenue Is Light

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Wells Fargo reported a 23 percent jump in first-quarter profit on Friday as the bank set aside less money to cover bad loans and it held down costs.

Earnings excluding items rose to 92 cents per share from 75 cents a share in the year-earlier period.

Revenue slipped to $21.3 billion from $21.6 billion a year ago.

Wall Street had expected Wells Fargo to report earnings excluding items of 88 cents a share on $21.59 billion in revenue, according to a consensus estimate from Thomson Reuters.

The largest U.S. mortgage lender's shares fell before the opening bell, following the news.

Earlier Friday, JPMorgan Chase reported quarterly profit that topped analyst expectations and increased its dividend, but shares dipped as loan growth slowed and net revenue fell.

"This is a group that's very, very strong over the last six to nine months. And really that's been in the face of no real change to earnings estimates, which means it's all (price to earnings) expansion," Scott Siefers, bank analyst at Sandler O'Neil, told CNBC. "So to see a little giveback, that's just not suprising at all."

-Reuters contributed to this article.

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