Wells Fargo (WFC) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $4.9 billion ($1.33 per diluted share), with EPS up year-over-year and sequentially, driven by strong fee-based revenue growth and efficiency initiatives.

• Total revenue for Q2 2024 was $20.7 billion, up 1% year-over-year, as higher noninterest income offset lower net interest income.

• Return on equity (ROE) was 11.5% and return on average tangible common equity (ROTCE) was 13.7%.

• Credit quality showed higher net charge-offs, especially in commercial real estate and credit card portfolios, but overall performance was stable.

• Strategic priorities include risk control, diversifying revenue, investing in technology and branch network enhancements, and efficiency initiatives.

Financial highlights

• Net interest income declined 9% year-over-year to $11.9 billion, driven by higher funding costs and lower loan balances.

• Noninterest income rose 19% year-over-year to $8.8 billion, with strong growth in investment advisory, trading, and investment banking fees.

• Noninterest expense increased 2% year-over-year, mainly due to higher operating losses, compensation, technology costs, and customer remediation accruals.

• Provision for credit losses was $1.2 billion, down 28% from Q2 2023 but up sequentially.

• Average deposits were stable at $1.3 trillion, with growth in all customer-facing businesses.

Outlook and guidance

• Full-year 2024 net interest income expected to decline 8%-9% from 2023, at the upper end of prior guidance.

• Noninterest expense guidance raised to approximately $54 billion for 2024, up from $52.6 billion, due to higher compensation, customer remediation, and FDIC special assessment.

• Dividend expected to increase to $0.40 per share (14%) in Q3 2024, subject to board approval.

• Stress capital buffer expected to rise to 3.8% for October 2024–September 2025.

• Management remains focused on risk and control, efficiency, and strategic investments to drive higher returns.