Wells Fargo profit falls on rising loan loss reserves

Wells Fargo & Co reported a fall in second-quarter profit on Friday as the bank set aside more money to cover loans that could sour if the U.S. pandemic recovery gives way to a recession. The fourth-largest U.S. lender reported a profit of $3.1 billion, or 74 cents per share, for the quarter that ended June 30, compared with $6 billion, or $1.38 per share, a year earlier.

Analysts on average had expected a profit of 80 cents per share, according to the IBES estimate from Refinitiv.