Wells Fargo
A man uses an automated teller machine at a Wells Fargo Bank branch on a rainy morning in Washington, Jan. 17, 2012. Reuters/Fred Prouser

Wells Fargo & Co. (NYSE:WFC), the biggest mortgage lender in the U.S., reported on Tuesday an 11 percent increase in fourth-quarter profit, thanks largely to thousands of job cuts from its home-loan business in the previous six months.

Net income after dividend payments on preferred shares rose to $5.37 billion from $4.86 billion a year earlier. On a per share basis, earnings were $1. Analysts, on average, had expected a profit of 98 cents per share, according to Thomson Reuters. Revenue fell 5.5 percent to $20.7 billion from $21.9 billion.

The fourth-largest U.S. bank by assets, based in San Francisco, said lower mortgage banking revenue was offset by higher net interest income, trust and investment fees.