Wells Fargo & Company Stock Earnings Reports

Wells Fargo reported strong Q3 2025 results with net income of $5.6 billion and diluted EPS of $1.66, driven by revenue growth (up 5% YoY), improved fee income (notably a 25% increase in investment banking fees YoY), accelerating loan growth (strongest linked-quarter loan growth in over three years) and continued credit improvement. Management highlighted that the Fed’s removal of the asset cap is enabling broader balance-sheet growth (total assets exceeded $2 trillion for the first time) and greater investment across businesses (cards, markets, investment banking, wealth). Management set a new medium-term ROTCE aspiration of 17%–18%, and is targeting a CET1 operating range of roughly 10%–10.5% (current CET1 ~11%), noting over $30 billion of capital above regulatory minimums. The company returned capital aggressively in Q3 (raised dividend, repurchased $6.1 billion of stock) and expects Q4 buybacks roughly in line with Q3. Net interest income (NII) was up sequentially but NIM declined modestly due to growth in lower-yielding trading assets; full-year 2025 NII is expected to be roughly in line with 2024 ($47.7B) and Q4 NII is guided to ~$12.4–$12.5B. Non-interest expense guidance was revised to ~$54.6B for full year 2025 (Q4 ~ $13.5B), largely reflecting higher-than-expected severance and higher revenue-related comp in WIM. Credit metrics continued to improve (lower net charge-offs, declining NPAs); allowance modestly decreased reflecting better performance. Management emphasized continued investments, expense-efficiency programs (headcount down 24% since 2020), and organic growth priorities while remaining open to selective inorganic opportunities. Key investor takeaways: 1) management believes Wells is materially repositioned post-asset cap with meaningful excess capital and a clear path to higher returns; 2) ROTCE target of 17%–18% and CET1 operating target ~10%–10.5% provide metric-based objectives for returns and capital deployment; 3) near-term financials point to continued loan and fee revenue growth, stable credit, and ongoing share buybacks and dividend growth, while expenses will remain elevated this year due to severance and revenue-related comp.