Wells Fargo reported adjusted earnings per share of $1.76, falling short of the $1.66 consensus on an as-adjusted basis, and generated total revenue of $21.29 billion versus expectations of $21.65 billion. Net interest income rose 4% year-over-year to $12.33 billion, driven by higher loan balances and repricing, though the net interest margin contracted 10 basis points to 2.6%. Noninterest income increased 5% to $8.96 billion. The bank’s efficiency ratio deteriorated to 64%, above the 62.7% forecast, as expense reductions of 1% were offset by a $612 million severance charge related to workforce reductions affecting 5,600 roles. Excluding that charge, adjusted net income would have been $5.8 billion, up from $5.08 billion a year earlier.

Average loans grew 5% year-over-year to $955.8 billion, supported by gains in consumer, auto and corporate lending, while average deposits increased 2% to $1.38 trillion. The bank saw nonperforming assets rise 7.1% year-over-year, driven by select commercial and real estate credits, though net charge-offs declined 13% to $1.03 billion, reflecting improved credit quality in retail portfolios. Common Equity Tier 1 capital ratio stood at 10.6%, down from 11.1% a year earlier, and the firm repurchased 58.2 million shares for $5 billion during the quarter.

Since the Federal Reserve lifted the 2018 asset cap, Wells Fargo’s total assets have expanded by 11% over the past year. Broad-based loan growth and higher trading assets bolstered markets operations, while strategic investments in digital account opening drove a 4% increase in mobile active customers and a 21% gain in new credit card accounts in 2025. Auto loan balances grew 19%, and small-business checking volume outpaced 2024 levels. Premier client deposit and investment balances rose 14% as the bank added licensed bankers and financial advisors in targeted high-net-worth locations.

Wells Fargo strategists point to the final months of the Federal Reserve Chair’s term as a critical period for monetary policy direction. They note increasing pressure on the central bank, with policymakers split between further tightening and a patient stance. Analysts emphasize that any shift in the Fed’s terminal rate expectations or balance sheet runoff pace could materially affect net interest income and capital market revenues for the bank in 2026.