Wells Fargo & Co., the most valuable U.S. bank and largest mortgage lender, dropped 4% in New York trading after reporting a record third-quarter profit that was marred by narrower profit margins.

The bank fell $1.42 to $33.76 at 9:31 a.m., the most since June, after posting a 22% rise in net income to $4.94 billion, or 88 cents a share, from $4.06 billion, or 72 cents, a year earlier, according to a statement from the San Francisco- based company. While record-low rates spurred homeowners to refinance, boosting the mortgage unit, that also led to less interest income on the bank’s loans and other investments.

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