But Wells Fargo had its first quarter revenue fall about 1 percent to $22 billion, from $22.2 billion in the first three months past year.
Strong first-quarter earnings may not be enough to sustain a rally in bank shares that has been a primary driver of overall stock market gains since the US presidential election, as slower loan growth dents investor enthusiasm for the sector. ELM Advisors LLC increased its position in shares of Wells Fargo & Co by 18.7% in the first quarter.
"I wouldn't overreact to the short term in our loan growth with so many things that affect it", said JPMorgan Chief Executive Jamie Dimon.
Costs at Wells Fargo rose 6 percent compared to the year-ago period as the bank shelled out more for salaries as well as the legal costs related to the scandal. This marks at least the fifth straight quarter of an earnings beat, the previous 4-quarter average of +12%.
"Whereas we were bullish on banks late a year ago, we think that trade has largely played". First PREMIER Bank now owns 47,862 shares of the financial services provider's stock valued at $2,664,000 after buying an additional 654 shares in the last quarter. But management's outlook for loan growth has nonetheless been tempered.
Bank employees are "more actively marketing products" to customers again in the branches, said John Shrewsberry, the company's chief financial officer. It has three operating segments: Community Banking, Wholesale Banking, and Wealth and Investment Management.
Mr Gerspach said Mr Trump's election and the expectations of tax cuts and other measures had boosted optimism for stronger growth, but "we haven't seen concrete changes yet in policies".
After the close on Wednesday, Berkshire Hathaway Inc, Wells Fargo's largest shareholder, said it withdrew an application to the Federal Reserve to boost its ownership stake above 10 percent, and is instead selling 9 million shares to keep it below that threshold.
PNC also reported lower revenue in commercial mortgage loans, which resulted in reduced Corporate and Institutional Banking earnings as well. The recent uptick in interest rates has crushed a wave of mortgage refinancing that kicked off in 2010, leading to big declines in mortgage banking revenue.
A number of other equities analysts have also recently commented on the stock. They are up almost 16 percent on expectations of pro-growth policies and industry deregulation promised by President Donald Trump, as well as measured interest rate increases from the Federal Reserve.
Even so, bank executives sounded optimistic yesterday about the outlook for lending.
Although the bank has made attempts to put the scandal behind them, consumer doubt still lingers in the company's brand.
Wells Fargo's net interest income in Q1 2017 decreased $102 million from fourth quarter 2016 to $12.3 billion, primarily due to two fewer days in the quarter.