Wells Fargo reported a Q1/16 net income of $5.46 billion, down from $5.80 billion for Q1/15. Total revenue for the period of $22,195 million was up from $21,278 million in Q1/15.

Wells Fargo stated in its Q1/16 report that it had added $30.8 billion of loans and leases from GE Capital acquisitions, i.e., $4.1 billion from a rail car portfolio and $26.7 billion from commercial and industrial loans and leases.

Also, provision for credit losses of $1,086 million in Q1/16 was up 79% from $608 million a year earlier. Wells Fargo noted a reserve build of $200 million in Q1/16 was driven by deterioration in the oil and gas portfolio.

Chief Risk Officer Mike Loughlin noted, “While substantially all of the loan portfolio continues to perform well, the oil and gas portfolio remains under significant stress due to low prices and excess leverage in this industry.”

The lease financing Q1/16 average balance was $15,047 million with a reported yield of 4.74% compared to $12,319 million with a reported yield of 4.95% in Q1/15. Interest income in Q1/16 was $178 million, up 17% from $152 million for the same quarter a year earlier.

The net interest margin in Q1/16 of 2.90% was down 5 basis points from 2.95% in Q1/15.

Chairman and CEO John Stumpf said, “Wells Fargo’s first quarter results reflected the benefit our diversified business model as we managed challenges presented by a volatile operating environment for our industry. We remain focused on meeting the financial needs of our consumer and business customers, and I believe we are we are well positioned for the future.”