Wells Fargo reported second-quarter results that exceeded market forecasts, powered by growth in fees from its wealth management and investment banking divisions.

The San Francisco-based bank announced on Tuesday that its noninterest income climbed 13% year-over-year to $10.3 billion, surpassing the Bloomberg consensus estimate of $9.44 billion. This increase included a $728 million year-on-year rise in net gains from venture capital and equity investments.

Net interest income, which is the profit from interest-earning assets after deducting funding costs, came in at $12.3 billion, matching market expectations. The bank reaffirmed its full-year guidance for net interest income of approximately $50 billion, with its markets business expected to contribute around $2 billion.

Chief Executive Officer Charlie Scharf stated in the release, "The strength of the broader U.S. economy has provided clear benefits for us, and we are continuing to invest in our businesses and improve our operational controls, resulting in strong growth in key performance metrics across our portfolio."

For the quarter ended June 30, Wells Fargo's net profit increased by 17% to $6.4 billion, or $2.00 per share. Analysts surveyed by Bloomberg had anticipated adjusted earnings per share of just $1.71. Total revenue grew by 9% to $22.6 billion.

In early New York trading, shares of Wells Fargo (WFC) were up 1.5% at $88.95. As of Monday's close, the stock had declined 5.9% year-to-date, ranking second-worst among the 24 banks in the KBW Bank Index.

Following years of regulatory penalties and asset growth restrictions due to multiple compliance scandals, the bank had those limits formally lifted last year. It is now streamlining its business structure, increasing financing for trading clients, and deepening customer relationships to build a stronger long-term profit foundation. Its second-quarter return on tangible common equity rose to 17.77%, putting it on track to meet the medium-term profitability target set last October.

Investment banking fee revenue surged 35% to $939 million. Wells Fargo ranks sixth on Bloomberg's league table for mergers and acquisitions, and it handled the highest average deal size in the industry, reflecting its deep involvement in several major M&A transactions this year.