Its net profit came in at US$5.25 billion, or US$1.60 per share.

Wells Fargo’s profit rose in the first quarter, aided by higher income from interest payments and increased trading gains from volatile markets.

The lifting of a seven-year, US$1.95 trillion asset cap on Wells Fargo last year has allowed the bank to expand its balance sheet and pursue stronger growth in all of its core businesses.

Wells Fargo is betting on growth in its credit card and autos businesses to lift loan growth this year. A string of rate cuts by the US Federal Reserve in recent months has also encouraged customers to take on more debt.

“While markets have been volatile, we still see continued resiliency in the underlying economy, and the financial health of the consumers and businesses we serve remains strong, though the impact of higher oil prices will likely take some time to materialize,” CEO Charlie Scharf said in a statement.

Wells Fargo’s net interest income — the difference between earnings on loans and payments on deposits — rose 5 per cent to US$12.1 billion in the quarter from a year earlier.

Wells Fargo’s markets revenue surged 19 per cent to US$2.17 billion in the quarter ended March 31 from a year earlier.

Net profit came in at US$5.25 billion, or US$1.60 per share, the fourth-largest US lender said on Tuesday.

That compares with US$4.89 billion, or US$1.39 per share, the company reported a year earlier.