Wells Fargo Q1 EPS Tops by $0.02, Revenue Falls $310M Below Forecast
Wells Fargo reported Q1 adjusted EPS of $1.60, beating estimates by $0.02, while revenue of $21.45 billion missed forecasts by $0.31 billion despite 6% year-over-year growth. Net interest income rose 5% to $12.10 billion and noninterest income climbed 8% to $9.35 billion.
1. First-Quarter Financial Results
Wells Fargo delivered adjusted EPS of $1.60 in Q1, outpacing the consensus by $0.02, while revenue of $21.45 billion fell $0.31 billion short of estimates despite a 6% increase year over year. Net interest income rose 5% to $12.10 billion and noninterest income increased 8% to $9.35 billion, driven by strength in trading and advisory fees.
2. Loan and Deposit Growth
Average loans grew 10% year over year to $996.0 billion, supported by expansion in commercial, industrial and auto lending portfolios. Average deposits climbed 6% to $1.42 trillion, reflecting ongoing customer deposit inflows and balance sheet optimization.
3. Capital and Credit Quality
Return on equity improved to 12.2% from 11.5% a year earlier as efficiency measures supported profitability. Credit quality remained stable with net loan charge-offs at 0.45% of average loans and provisions for credit losses rising 22% to $1.14 billion, while the Common Equity Tier 1 ratio declined to 10.3% from 11.1%.