Wells Fargo’s profits rose in the third quarter as the bank benefitted from customers paying rising interest rates on their loan repayments. The U.S. lender reported that its net interest income climbed 8% to $13.1 billion for the three-month period ending September.
Net income overall rose to $5.77 billion, or $1.48 per share, over the third quarter from $3.59 billion, or 86 cents per share, the previous year, the bank reported on Friday.
The rampant rise in interest rates on US loans comes after the swiftest monetary policy tightening in 40 years in an effort to get resiliently steep inflation under control. The Federal Reserve revealed that its monetary policy will need to remain highly restrictive over the near term as it aims to cool inflation down to its 2% target.