WELLS Fargo & Co, the biggest bank on the United States West Coast, said first-quarter profit fell 11 percent, less than analysts estimated. The bank rose 5.2 percent in early trading.

Net income dropped to US$2 billion, or 60 cents a share, from US$2.24 billion, or 66 cents, a year earlier, the San Francisco-based company said yesterday.

The earnings included a US$334-million gain from Visa Inc's initial public offering. Analysts were estimating Wells Fargo would earn 57 cents a share, according to a survey compiled by Bloomberg News.

Wells Fargo reported its second straight drop in quarterly profit as West Coast house prices dropped 9.4 percent over 12 months, pushing more customers into default. The bank is the country's second-largest home-equity lender after Bank of America Corp.

"This bank has the most conservative credit culture of any major bank and the strongest sales culture," said Robert Millen, a fund manager at Jensen Investment Management Inc. "They've not gotten too much into these exotic instruments that are causing problems at so many other big banks."

First-quarter revenue at Wells Fargo increased 12 percent to US$10.6 billion. Net writedowns jumped to US$1.53 billion from US$1.21 billion in the fourth quarter.