HOW DID WELLS FARGO INCREASE EARNINGS 20% IF REVENUE FELL 4%?

NEW YORK (MarketWatch) — Wells Fargo & Co., /quotes/zigman/239557/quotes/nls/wfc WFC +1.18% the San Francisco banking major, reported on Tuesday that fourth-quarter net income rose 20% on 4.1% lower revenue. Profit reached $3.89 billion, or 73 cents a share, from $3.23 billion, or 61 cents, in the year-earlier period. Revenue slipped to $20.61 billion from $21.49 billion. A survey of analysts by FactSet Research produced consensus estimates of 72 cents a share of profit on $20.01 billion of revenue. Assets not earning interest were $26 billion, down $6.3 billion from a year earlier, the firm said. The net interest margin — the difference between what a bank takes in on loans and pays out on deposits — narrowed to 3.89% from 4.16%.

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