Wells Fargo & Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.67%.
Did WFC Beat Earnings? Q2 2025 Results
Wells Fargo delivered a standout second quarter in 2025, posting earnings per share of $1.60 against a consensus estimate of $1.40, a beat of 14.10%, while revenue of $20.82 billion edged past expectations by 0.28%. The quarter's defining moment, however, was the lifting of the Federal Reserve's long-standing asset cap, a constraint CEO Charlie Scharf described as a pivotal milestone, which now frees the bank to pursue more aggressive growth across its consumer, commercial, and community banking businesses. Net income climbed to $5.49 billion, up from $5.49 billion a year ago, with noninterest income rising 4% to $9.11 billion as investment banking fees and asset-based wealth management revenues gained ground. Credit quality also improved, with net charge-offs falling to 44 basis points annualized from 57 basis points a year prior. Looking ahead, Wells Fargo expects 2025 net interest income to track roughly in line with 2024's $47.70 billion, and the board approved a dividend increase to $0.45 per share for the third quarter, up 12.5% from the prior period.
- Lifting of Federal Reserve asset cap enabling unrestricted growth
- Termination of thirteen consent orders since 2019 including seven in 2025
- Fee-based income growth driving revenue expansion
- Higher asset-based fees in Wealth and Investment Management on higher market valuations
- Higher investment banking fees including advisory fees
- Lower deposit pricing improving net interest income sequentially
- Efficiency initiatives reducing headcount and operating costs
- Improved credit quality with net charge-off ratio declining to 0.44% from 0.57% YoY
- Merchant services joint venture acquisition contributing to card fee growth
- Strong capital position enabling significant share repurchases
“Our second quarter results reflect the progress we are making to consistently produce stronger financial results with net income and diluted earnings per share up from both the first quarter and a year ago. Our efforts to increase fee-based income drove revenue growth and both net interest income and noninterest income grew from the first quarter. We are investing in our businesses but remain focused on expense management. While there continue to be risks as we look forward, activity levels have remained consistent and our strong credit performance continues to point to the strength of our commercial and consumer customers' financial position.”
Wells Fargo CEO, on the earnings call
Forward Guidance & Outlook
Wells Fargo expects 2025 net interest income to be roughly in line with 2024 NII of $47.7 billion, with the largest driver of change from prior guidance being lower NII in the Markets business (largely offset by higher noninterest income). NII performance will be determined by the absolute level of rates and yield curve shape, deposit balances, mix and pricing, and loan demand. The company expects 2025 noninterest expense to be approximately $54.2 billion, unchanged from prior guidance. The third quarter 2025 common stock dividend is expected to be $0.45 per share (up from $0.40), subject to board approval. The company's stress capital buffer is expected to decrease to 2.5% (or 2.6% under a pending rulemaking proposal).
WFC YoY Financials
WFC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.