US banking giant Wells Fargo reported flat earnings Tuesday, as rising salaries and other costs offset gains in loans and deposits.

Earnings for the second quarter were $5.7 billion, about even with the year-ago period. Revenues rose 1.2 percent to $21.32 billion.

Average loans rose five percent from the year-ago period to $870.4 billion.

Results were also boosted by higher total deposits and by improved credit quality, which reduced the allowance the bank must keep for bad loans.

However, total non-interest expenses at the bank rose 2.3 percent to $12.5 billion from the year-ago period due to higher salaries, commissions and equipment costs.

Wells Fargo, the largest mortgage lender in the US, said home lending applications and originations were both higher than in the year-ago period.

"Compared with a year ago, we grew loans, deposits and capital, and our balance sheet remained strong," said chief executive John Stumpf.

"Credit results also improved and we continued to adhere to our disciplined approach to risk management."

Earnings translated into $1.03 per share, matching analyst forecasts.

Revenues were slightly below the $21.69 billion projected by analysts.

Wells Fargo shares fell 1.3 percent to $56.00 in pre-market trade.