The bank, however, forecast a bigger-than-expected 9% drop in 2024 interest income on Friday following the U.S. Federal Reserve's jumbo-sized rate cut in September.
This compares with Wall Street expectations of an 8.4% decline.
The fourth-largest U.S. lender reported third-quarter earnings per share of $1.52, compared with expectations of $1.28, according to data from LSEG.
Wells Fargo's net interest income -- or the difference between what it earns on loans and pays out for deposits -- dropped 11% to $11.69 billion in the quarter.
Analysts on average had predicted $11.87 billion, according to estimates compiled by LSEG.
"Our risk and control work remains our top priority," said Chief Executive Officer Charlie Scharf. "Credit performance was consistent with our expectations, commercial loan demand remained tepid, we saw growth in deposit balances in all of our businesses."
Banks' interest income, which had benefited in recent years as the Fed raised interest rates, is expected to keep declining for the rest of 2024.
The U.S. central bank last month lowered its benchmark policy rate for the first time since 2020, cutting it by 50 basis points. Policymakers have projected another half of a percentage point reduction by the end of this year.
The rate cut was followed by top banks lowering prime lending rates, which will likely shrink their interest income. Banks have also tightened lending standards this year.
Wells Fargo's revenue declined 2% to $20.37 billion in the third quarter.
Average loans came in at $910.3 billion versus $943.2 billion a year earlier.
Loan demand has been subdued as higher interest rates deterred commercial and consumer borrowers. At the same time, banks have had to compete for deposits by paying clients more.
Wells Fargo set aside $1.07 billion in provisions to cover souring loans. That compared with $1.20 billion a year earlier.
Executives at top lenders have said that U.S. consumers remain resilient despite pockets of stress and higher loan delinquencies among lower-income households.
Wells Fargo is also reportedly doubling down on efforts to lift a $1.95 trillion asset cap imposed by the Federal Reserve that prevents the bank from growing until regulators deem it has fixed problems dating back to the 2016 fake accounts scandal.
In September, a U.S. banking regulator found its safeguards against money laundering and other illegal transactions were too lax and restricted its ability to expand in risky businesses.
The asset cap curtails Wells Fargo's ability to take in more deposits and expand its trading business, two potential growth areas for the bank, CEO Scharf said earlier this year.
It still has eight regulatory punishments, called consent orders, that it is working to address.
