---

Wells Fargo's profits fell in the third quarter due to weak loan demand and reduced interest payments affecting interest income.

The fourth-largest bank in the United States reported a net profit of $5.11 billion for the quarter ending September 30, down from $5.78 billion for the same period last year.

Wells Fargo's net interest income (NII) declined 11% to $11.69 billion. According to LSEG estimates, analysts had an average forecast of $11.87 billion. NII refers to the difference between deposit and loan interest rates.

Interest income, which banks have benefited from in recent years due to rising rates by the Federal Reserve, is expected to continue declining until the end of 2024.

Last month, the Federal Reserve lowered the benchmark policy rate by 50 basis points, the first time since 2020. Policymakers expect another half-point rate cut by the end of this year.

Following the rate cut, top banks lowered promotional loan rates, which could further decrease their interest income.

The article is not finished. Click on the next page to continue.

The article is not finished. Click on the next page to continue.