Wells Fargo third quarter profits rose 59% after freeing up money it had set aside to cover losses on loans. The bank said it cut $ 1.7 billion from the money it had mis set aside to cover loan losses. He had lifted these loan loss reserves in early 2020, when the future of the economy and the duration of the the recession caused by the Covid-19 pandemic was uncertain. The bank posted net income of $ 5.1 billion, or $ 1.17 per share, beating the forecast of 98 cents from analysts polled by Refinitiv. The steps we take to improve operational efficiency and financial returns are reflected in our results, in addition to the benefits we derive from the economic recovery, said CEO Charlie Scharf. In the second quarter of 2020, Wells Fargo increased the reserves it had built up for loan losses in 8.4 billion dollars, which broughtbank to publish its first quarterly loss since the Great Recession at that time.Read moreScharf was was appointed CEO at Wells Fargo two years ago to deal with the scandal of the bank creating fake customer accounts and improperly charging them fees. He is the fourth CEO since fall 2016. Elizabeth Warren wants the Fed to dismantle Wells Fargo It has had some success. A 2018 consent order with the Consumer Financial Protection Bureau regarding the bank's retail practices were recently allowed to expire, an event Scharf described as an important step in our progress to correct our past practices. But that does not mean that its regulatory issues are behind. The Office of the Comptroller of the Currency, the Treasury Department's banking regulator, slapped him with an 250 million dollars in fine in September for not reacting quickly enough to compensate customers who were victims of the bank's dangerous or unhealthy practices. The recent OCC enforcement measures are a reminder that the significant deficiencies that existed upon my arrival must remain our top priority, said Scharf. I believe we are making significant progress, and I remain confident in our ability to continue to close remaining gaps over the next several years, even though we may continue to have setbacks along the way. Wells Fargo ( WFC ) were slightly higher in pre-market trading on results.