Wells Fargo reported fourth-quarter total revenue of $21.29 billion, a 4% year-over-year increase but missing the consensus forecast of $21.65 billion. Shares tumbled approximately 4.5% in early trading following the revenue miss, despite positive earnings surprises. Investors questioned the bank’s ability to sustain fee and interest income growth against evolving macroeconomic pressures and competitive dynamics in loan markets.

The bank delivered adjusted earnings per share of $1.76, exceeding the $1.66 consensus estimate, and reported net income of $5.4 billion, or $1.62 per diluted share, which included a $612 million severance charge. Excluding that charge, adjusted net income reached $5.8 billion. Net interest income rose 4% to $12.33 billion, while noninterest income climbed 5% to $8.96 billion, supported by higher credit card and mortgage servicing fees.

Average loans grew 5% year-over-year to $955.8 billion, and average deposits increased 2% to $1.38 trillion, reflecting continued client engagement across consumer and commercial segments. Credit quality improved as net charge-offs declined 13% to $1.03 billion. The Common Equity Tier 1 capital ratio stood at 10.6%, down from 11.1% a year earlier. During the quarter, the bank repurchased 58.2 million shares at a total cost of $5.0 billion, underscoring management’s commitment to returning capital to shareholders.

With the Federal Reserve expected to cut rates later in the year, Wells Fargo projects mid-single digit loan and deposit growth for 2026 and anticipates net interest income will benefit from a steeper yield curve. Following the removal of its $1.95 trillion asset cap in June 2025, the bank raised its medium-term return on tangible common equity target to 17%–18%, up from 15%, aiming to leverage improved operational efficiencies and risk controls to drive higher profitability.