Wells Fargo reported fourth-quarter revenues of $21.50 billion, missing the consensus estimate of $21.66 billion by 0.7%. Loan and deposit fees in the Consumer Banking and Lending segment declined 4% year-over-year as trading volumes softened, while Corporate and Investment Banking revenues were flat. Management attributed the shortfall to wider spreads compressing fee income and slower capital markets activity in December.

The company delivered adjusted earnings of $1.67 per share, up 17% from $1.43 in the year-ago period. Wells Fargo’s net income rose to $5.4 billion from $4.6 billion a year earlier, driven by cost controls that reduced noninterest expenses by $300 million. Crucially, the Federal Reserve’s June 2025 removal of the $1.95 trillion asset cap—imposed after the fake-accounts scandal—allowed the bank to redeploy capital into higher-yielding loans.

Wells Fargo’s net interest income climbed 12% sequentially to $14.2 billion, benefiting from a mix shift toward commercial lending and floating-rate mortgages. The company reported a 1.75% net interest margin, up from 1.60% in Q3, as deposit betas remained below 30% despite the Fed’s cuts. Management highlighted strong loan originations, with average commercial loan balances rising 5% year-over-year to $320 billion.

As of quarter-end, Wells Fargo’s Common Equity Tier 1 ratio stood at 11.8%, comfortably above regulatory minimums, following the Fed’s asset cap removal. The board reinstated its regular dividend at $0.30 per share, the first payout since 2018, and authorized a $6 billion share repurchase program. Executives forecast mid-single-digit loan growth in 2026 and expect efficiency measures to drive a 15% return on tangible common equity by year-end.