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Wells Fargo profit increases 3.8% as home lending regains traction
Wells Fargo profit increases 3.8% as home lending regains traction

With solid quarterly results, Wells Fargo & Co. showed why it has become a darling of banking investors, but it also raised a crucial question: How can the San Francisco financial giant continue its hot stock performance at a time when economic growth remains slow, questions linger about its core home-lending business and low interest rates are eating into profit from lending? Skeptics said it may be difficult. Wells Fargo stock, up 21.5% over the last year, is "getting ahead of its history," analyst Erik Oja at S&P Capital said. Shares are trading at levels he described as more appropriate for large regional banks with better growth prospects, such as US Bancorp of...

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