Wells Fargo & Company D/e Pfd Stock Earnings Reports

Wells Fargo reported solid Q1 2026 results with broad-based revenue and balance sheet growth driven by both consumer and commercial businesses. Key financials: diluted EPS +15% YoY, revenue +6% YoY (net interest income +5%, noninterest income +8%), loans +11% YoY (period-end > $1 trillion), deposits +7% YoY, and pre-tax, pre-provision profit +14% YoY. The company returned $5.4 billion to shareholders in the quarter (including $4.0 billion in buybacks) and maintained a CET1 ratio of 10.3% (within its 10.0%–10.5% target). Management highlighted strong momentum across cards (new accounts +~60% YoY), auto originations (more than doubled YoY), Wealth & Investment Management (assets +11% YoY, highest net flows in >10 years), and Markets (revenue +19% YoY). Credit performance remains stable: net charge-offs ~45 bps (stable YoY), commercial credit performing well, and nonperforming assets modestly lower YoY. Management provided deeper disclosure on nonbank financial institution/private credit exposure (~$210B financials-except-banks loans and ~$36B in corporate debt finance private credit) and described the portfolio as diversified with structural protections; a single fraud-related loss in that area was called an isolated incident. Outlook/guidance: management reaffirmed 2026 net interest income guidance of ~$50 billion (plus/minus) and 2026 noninterest expense guidance of ~$55.7 billion. They expect some near-term margin compression driven by Markets balance-sheet growth and higher interest-bearing deposit mix, but see a path to higher returns over time. On regulatory capital, Wells Fargo views the recent Basel III proposals as constructive and estimates an initial ~7% decline in RWAs under the proposal, and expects to remain near a 1.5% G-SIB surcharge. Key risks called out: sensitivity to oil/energy price effects on lower-income consumer stress, macro/geopolitical volatility, and uncertainty until proposed capital rules are finalized.