Wells Fargo Q1 EPS Beats by $0.02 as Revenue Rises 6%
Wells Fargo reported Q1 adjusted EPS of $1.60, beating estimates by $0.02 and rising 15% year-over-year, while revenue increased 6% to $21.45 billion versus a $21.76 billion consensus. Net interest income rose 5% to $12.10 billion and noninterest income climbed 8% to $9.35 billion, lifting ROE to 12.2%.
1. Q1 Financial Performance
Wells Fargo delivered adjusted earnings per share of $1.60 in the first quarter, exceeding forecasts by $0.02 and marking a 15% increase from the same quarter last year. Revenue grew 6% to $21.45 billion, narrowly missing the $21.76 billion consensus.
2. Income Mix Trends
Net interest income climbed 5% to $12.10 billion, reflecting strong lending margins, while noninterest income rose 8% to $9.35 billion, driven by service fees and wealth management gains.
3. Loan, Deposit Growth and Capital Returns
Average loans expanded 10% year-over-year to $996.0 billion, and deposits rose 6% to $1.42 trillion. The firm returned $4 billion to shareholders through common stock repurchases.
4. Credit Quality and Regulatory Ratios
The provision for credit losses increased 22% to $1.14 billion, with net loan charge-offs stable at 0.45% of average loans. The Common Equity Tier 1 ratio declined to 10.3% from 11.1% a year earlier.