Wells Fargo reported Q2/14 net income of $5.7 billion was up from $5.5 billion for Q2/13. For H1/14, net income was $11.6 billion, up from $10.7 billion for the same period in 2013.

Revenue was $21.1 billion, down from $21.4 billion in Q2/13, but up from $20.6 billion in Q1/14, reflecting increases in both net interest income and noninterest income. Several businesses generated linked-quarter growth, including capital markets, corporate banking, commercial real estate, corporate trust, debit card, personal lines and loans, merchant services, and retail brokerage.

Commenting on credit quality, chief risk officer Mike Loughlin said, “Credit performance continued to improve in the second quarter as credit losses remained at historically low levels, nonperforming assets continued to decrease and we continued to originate high quality loans. Credit losses were $717 million in second quarter 2014, compared with $1.2 billion in second quarter 2013, a 38% improvement.”

Loughlin added, “The quarterly loss rate (annualized) in the second quarter was 0.35% with commercial losses of only 0.03% and consumer losses of 0.62%. Nonperforming assets declined by $686 million, or 15% (annualized), from last quarter. We released $500 million from the allowance for credit losses in the second quarter, reflecting improvements in credit performance, driven primarily by the continued housing recovery. While credit remained very strong, improvement has moderated with stable delinquency trends. We continue to expect future reserve releases absent a significant deterioration in the economic environment, but expect a lower level of future releases as the rate of credit improvement slows and the loan portfolio continues to grow.”

The provision for credit losses in Q2/14 was $217 million, down from $652 million or $435 million as net loan charge-offs improved to $717 million in Q2/14, or 0.35% (annualized) of average loans, compared with $1.152 billion in Q2/13, or 0.58% (annualized) of average loans.

To read the entire Wells Fargo news release, click here.