Wells Fargo reported Q2/15 net income of $5.6 billion compared with $5.7 billion for Q2/15. Revenue of $22.2 billion was up 4% from $21.3 billion a year earlier.

Highlights from the news release include:

• Total average loans of $950.8 billion in Q2/16 were up 9% or $80.4 billion compared to the same period last year. The bank noted “broad-based growth” including GE Capital acquisitions.
• Net charge-offs of $924 million in Q2/16 were up $274 million compared to Q2/15 on higher losses in the oil and gas portfolio. The bank noted a $651 million increase in oil and gas nonaccruals.
• The provision for credit losses of $1,074 million in Q2/16 was up from $300 million or 258% compared to a year earlier. The bank noted, “results in the oil and gas portfolio remained under pressure with higher credit losses and nonaccrual loans.”
• Lease financing average balances for the quarter ended June 30 was $18.9 billion with a yield of 5.12% up 53% compared to $12.4 billion with a yield of 5.16% a year earlier. Interest income of $242 million was up from $160 million in Q2/15.
• The YTD through Q2/16 net interest margin of 2.88% was down from 2.96% a year earlier.

Chairman and CEO John Stumpf said, “Wells Fargo’s second quarter results demonstrated our ability to generate consistent performance during periods of economic, capital markets and interest rate uncertainty. Compared with a year ago, we had solid growth in loans, deposits and customers, which are our fundamental drivers of long-term value. We also improved our efficiency ratio while continuing to reinvest in the franchise. We returned more capital to our shareholders in the quarter and were pleased to have received a non-objection to our 2016 Capital Plan from the Federal Reserve. We remain well positioned to continue to meet the financial needs of our customers.”