Wells Fargo & Co., the fifth-largest bank in the United States, today reported a 22% drop in profit for the second quarter ended June 30, as more customers failed to repay their loans.

The San Francisco-based company, however, raised its quarterly stock dividend to 34¢ from 31¢.

Wells Fargo said it earned US$1.75 billion, or 53¢ a share, in the April-June period. That’s down from US$2.28 billion, or 67¢, a year earlier.

Revenue rose 16% to a record US$11.5 billion.

The bank took a provision for credit losses of US$3 billion. That provision includes an increase in reserves of US$1.5 billion.