Wells Fargo & Co., the world's most valuable bank, said second-quarter profit fell 2.8 percent as more energy loans soured, expenses rose and revenue from mortgage lending declined... Net interest margin, the difference between what a bank pays for deposits and earns on loans, decreased 4 basis points in the quarter to 2.86 percent, falling short of some analysts' estimates. The measure, known as NIM, has declined the past four quarters.


Provisions for credit losses more than tripled to $1.07 billion from a year earlier, tied largely to the bank's oil and gas portfolio, while net write-offs rose about 42 percent to $924 million, Wells Fargo said. Net interest income, including the loan-loss provision, declined 2.8 percent to $10.7 billion from a year earlier... "... "The oil and gas portfolio remains under significant pressure," Chris Wheeler, an analyst at Atlantic Equities LLP wrote in a note to clients.

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