Wells Fargo (WFC) Q4 2024 earnings summary

Executive summary

• Fourth-quarter 2024 net income was $5.1B ($1.43 per diluted share), up 66% year-over-year, including $863M discrete tax benefits, $647M severance expense, and $448M net losses on debt securities repositioning.

• Revenue of $20.4B was flat year-over-year; net interest income declined 7% while noninterest income rose 11%.

• Noninterest expense fell 12% year-over-year, reflecting lower FDIC assessments and personnel costs.

• Significant capital return: $25B to shareholders in 2024, including $20B in share repurchases (+64% YoY) and a 15% dividend increase.

• OCC terminated a major consent order, marking progress on risk and control remediation.

Financial highlights

• Net interest income was $11.8B, down 7% year-over-year; noninterest income was $8.5B, up 11% year-over-year.

• Noninterest expense was $13.9B, down 12% year-over-year, aided by lower FDIC assessment.

• Provision for credit losses was $1.1B; net loan charge-offs $1.2B (0.53% of avg loans), down $41M YoY.

• Average loans were $906.4B, down 3% year-over-year; average deposits were $1.4T, up 1% year-over-year.

• CET1 ratio at 11.1%, well above regulatory minimum.

Outlook and guidance

• 2025 net interest income expected to be 1–3% higher than 2024 ($47.7B), with growth weighted to the second half.

• Noninterest expense for 2025 projected at $54.2B, reflecting efficiency initiatives and increased investment in technology and risk infrastructure.

• Modest loan and deposit growth anticipated, with stable deposit pricing and further reduction in high-cost funding.

• ROTCE target remains at 15%, with 2024 ROTCE at 13.9%.

• Management expects continued benefits from efficiency initiatives and investments in core businesses.