Wells Fargo (WFC) Q4 2025 earnings summary

Executive summary

• Net income for 2025 reached $21.3 billion, with diluted EPS up 17% year-over-year and fee-based revenue up 5%, reflecting broad-based growth in Consumer and Commercial businesses.

• Q4 2025 net income was $5.4 billion ($1.62 per diluted share), or $5.8 billion ($1.76 per share) excluding $612 million in severance expense.

• Positive operating leverage achieved, with headcount down over 25% since Q2 2020 and 22 consecutive quarters of reductions.

• Asset cap removal enabled renewed balance sheet growth and the closing of 13 regulatory orders since 2019.

• $23 billion returned to shareholders in 2025, including $18 billion in buybacks and a 13% dividend increase.

Financial highlights

• Total Q4 2025 revenue rose 4% year-over-year to $21.3 billion; net interest income up 4%, noninterest income up 5%.

• Noninterest expense declined 1% year-over-year, aided by efficiency initiatives and lower FDIC assessment expense.

• Average loans increased 5% year-over-year to $955.8 billion, with commercial and industrial loans driving growth.

• Average deposits grew $23.9 billion year-over-year to $1.38 trillion, with reduced average deposit costs by 29 basis points.

• Net charge-offs declined 13% year-over-year; net loan charge-off rate improved to 0.43%.

Outlook and guidance

• 2026 net interest income expected at ~$50 billion, with NII excluding markets at ~$48 billion, assuming 2–3 Fed rate cuts and stable 10-year Treasury rates.

• Average loans and deposits projected to grow mid-single digits from Q4 2025 to Q4 2026.

• Non-interest expense for 2026 expected at ~$55.7 billion, with $2.4 billion in gross expense reductions offset by higher technology, investment, and compensation costs.

• Medium-term ROTCE target set at 17%-18%, with confidence in achieving this through expense discipline and revenue growth.