Wells Fargo & Co (NYSE:WFC) stock rose 0.0088% (As on April 12, 11:16:36 AM UTC-4, Source: Google Finance) after the company reported a profit for first quarter that decreased from the same period last year but beat the Street estimates. Wells Fargo attributed an 8% decline in net interest income to the impact of higher interest rates on funding costs and a shift by customers towards higher-yielding deposit products. Its net income reached $4.62bn compared to $4.99bn, a year earlier. The bank allocated $938m for credit losses in the period, making for a decrease in the allowance for credit losses, primarily driven by commercial real estate and auto loans. Fee revenue rose 17% to $8.36 billion. As typical, the largest fee revenue source was investment advisory and other asset-based fees at $2.33 billion, followed by $1.46 billion in net gains from trading activities, $1.23 billion in deposit-related fees and $1.06 billion in card fees.

Meanwhile, Wells Fargo disclosed in an Aug. 1 regulatory filing it would be required to pay $1.9 billion in a special assessment by the FDIC as part of replenishing the federal funds used to resolve three high-profile bank failures: First Republic, Signature Bank and Silicon Valley Bank.

Further, the bank has been pulling back from providing funds for mortgage loans made by third-party lenders, as well as serving Federal Housing Administration loans. The decision also reflects the rise of financial technology lenders, such as new market leader Rocket Mortgage. As a result, Wells Fargo’s mortgage banking fees were down 1% to $230 million.

WFC in the first quarter of FY 24 has reported the adjusted earnings per share of $1.20, beating the analysts’ estimates for the adjusted earnings per share of $1, according to figures compiled by Thomson Reuters. The quarter also was affected by an additional $284 million charge related to a Federal Deposit Insurance Corp. assessment that reduced earnings by 6 cents. The company had reported the adjusted revenue growth of 0.6 percent to $20.86 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $20.2 billion.

Additionally, Wells Fargo reported spending $6.1 billion during the quarter to repurchase 112.5 million shares. The bank projects spending at least $12 billion on share repurchases in fiscal 2024.

The bank reiterated that its NII could fall 7% to 9% this year.