Wells Fargo & Company
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +10.05%.
Did WFC Beat Earnings? Q1 2025 Results
Wells Fargo delivered a notably strong first-quarter earnings beat on the bottom line, even as revenue fell short of expectations. The bank posted EPS of $1.39 against a consensus estimate of $1.23, a 13.31% beat, while revenue of $20.15 billion trailed the $20.76 billion estimate by 2.94% and dropped sharply year-over-year. The per-share outperformance was driven largely by an aggressive share buyback program that reduced diluted shares outstanding by 8%, combined with disciplined expense management and improved credit quality, with net charge-offs declining to 45 basis points from 50 a year ago. Net interest income remained under pressure, slipping 6% to $11.49 billion as rate cuts and deposit mix shifts weighed on margins. On the regulatory front, Wells Fargo closed five additional consent orders during the quarter, a milestone that reinforced confidence in the bank's long recovery arc. Management held its full-year guidance steady, projecting net interest income growth of 1% to 3% over 2024 and noninterest expense of approximately $54.20 billion, even as trade policy uncertainty clouds the broader economic outlook. <a href="https://247wallst.com/investing/2025/03/01/wells-fargo-just-paid-investors-how-much-did-they-get/">Shareholders have benefited</a> from the bank's commitment to returning capital through both buybacks and dividends.
- Fee-based revenue growth across core businesses
- 16% diluted EPS growth year-over-year
- 8% reduction in diluted common shares through buybacks
- Noninterest expense down 3% year-over-year from lower operating losses and efficiency initiatives
- Net charge-offs declined 13% year-over-year to 0.45% of average loans annualized
- Investment banking fees up 24% year-over-year on increased debt capital markets activity
- Asset-based fees in Wealth and Investment Management up on higher market valuations
- $263 million gain on sale of commercial non-agency third-party servicing business
- $313 million discrete tax benefits reducing effective tax rate to 9.6%
- Five consent orders closed during the quarter
“We produced solid results with diluted earnings per share increasing 16% from a year ago reflecting fee-based revenue growth across many of our core businesses, continued expense discipline, improved credit results, and an 8% reduction in diluted common shares as we continued to return capital to shareholders. I am excited about the momentum we are building across our businesses as we work to build one of the most respected financial institutions in the country.”
Wells Fargo CEO, on the earnings call
Forward Guidance & Outlook
Wells Fargo expects 2025 net interest income to be approximately 1% to 3% higher than 2024, unchanged from prior guidance. Net interest income performance will ultimately be determined by factors including the absolute level of rates and the shape of the yield curve, deposit balances, mix and pricing, and loan demand. The company expects 2025 noninterest expense to be approximately $54.2 billion, unchanged from prior guidance. Management expects continued volatility and uncertainty and is prepared for a slower economic environment in 2025, though the actual outcome will depend on the results and timing of trade policy changes.
WFC YoY Financials
WFC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.