new york (Bloomberg) — Wells Fargo & Co., the biggest bank on the US West Coast, rose the most in more than 25 years after reporting better-than-expected second-quarter profit and raising its dividend.

Wells Fargo advanced $4.09 to $24.56 in 10.29 a.m. New York Stock Exchange composite trading, and jumped as high as $24.74 after the bank said net income dropped 23 percent to $1.75 billion, or 53 cents a share, from $2.28 billion, or 67 cents, a year earlier. That beat the 50-cent average estimate of analysts surveyed by Bloomberg. Revenue rose 16 percent to a record $11.5 billion.

Gains in credit-card fees and insurance softened the impact of bad home loans at the San Francisco-base bank, which increased the quarterly payout 10 percent. While earnings have declined for three straight quarters, chief executive officer John Stumpf has kept the bank profitable even as Citigroup Inc. and Washington Mutual Inc. racked up losses and lenders Countrywide Financial Corp. and IndyMac Bancorp Inc. disappeared.