Wells Fargo & Company Stock Earnings Reports

Wells Fargo reported a solid Q1 2026: diluted EPS +15%, revenue +6% (5% NII, 8% noninterest income), period-end loans +11% and deposits +7% year-over-year. Revenue growth was broad-based across Consumer Banking & Lending, Commercial Banking, Corporate & Investment Banking (notably banking +11% and markets +19%), and Wealth & Investment Management (+14%). Management emphasized continued investments in technology (including AI), marketing and senior talent while maintaining expense discipline; noninterest expense guidance for 2026 remains ~$55.7B. Net interest income guidance for 2026 is unchanged at $50B (±), though management expects some NIM compression near term driven by growth in lower-ROA Markets assets, higher interest-bearing deposits and the impact of last year’s rate cuts. Credit quality remains strong: net charge-off ratio ~45 bps, stable NPA trends, and management expressed comfort with the composition and controls around the sizable nonbank financials (NDFI) lending portfolio (~$210B loans excluding banks, with private credit concentrated in a ~$36B Corporate Debt Finance bucket). Capital and liquidity: CET1 10.3% (within 10.0–10.5% target), $5.4B returned to shareholders in Q1 (including $4B buybacks), and an initial estimate that the proposed Basel III endgame could reduce RWAs by ~7% with the G-SIB surcharge around ~1.5%. Key risks / watch items cited: potential economic impact from higher energy prices, near-term NIM pressure, and the timing/implementation of regulatory capital rule changes. Management reiterated focus on organic growth to improve returns and confidence in achieving medium-term ROTCE targets.