Wells Fargo swings to profit on reserve release boost, cost cuts

July 14 (Reuters) – Wells Fargo & Co (WFC.N) swung to a profit in the second quarter, the bank said on Wednesday, as it released funds set aside to cover soured loans, while costs tied to its years-old sales practices scandal stabilized.

The fourth-largest U.S. lender reported a profit of $6 billion, or $1.38 per share, compared with a net loss of $3.85 billion, or $1.01 per share a year earlier.

Analysts on average had expected a profit of 95 cents per share, according to estimates from Refinitiv.

Reporting by Noor Zainab Hussain in Bengaluru and Matt Scuffham in New York; Editing by Anil D’Silva

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