Wells Fargo (WFC) Q4 2025 earnings summary

Executive summary

• 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, with total 2025 net income at $21.3 billion and diluted EPS up 17% year-over-year.

• Total revenue reached $21.3 billion in Q4, up 4% year-over-year, with net interest income up 4% and noninterest income up 5%.

• Achieved positive operating leverage, 22 consecutive quarters of headcount reductions, and strong growth in both Consumer and Commercial businesses.

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

• Removal of the Federal Reserve asset cap and closure of multiple regulatory orders enabled renewed growth focus.

Financial highlights

• Net interest income was $12.3 billion in Q4, up 4% year-over-year and 3% sequentially, with noninterest income up 5% year-over-year.

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

• Average loans grew 5% year-over-year to $955.8 billion, and average deposits rose 2% to $1.4 trillion.

• Provision for credit losses was $1.04 billion, down 5% year-over-year; net charge-offs declined 13% year-over-year.

• Pre-tax pre-provision profit rose 17% year-over-year to $7.6 billion.

Outlook and guidance

• 2026 NII expected to be approximately $50 billion, with Markets NII projected to grow to $2 billion.

• NII excluding markets forecasted at $48 billion for 2026, assuming two to three Fed rate cuts and stable 10-year Treasury rates.

• Average loans and deposits expected to grow mid-single digits year-over-year, with provision expense rising to support loan growth.

• Non-interest expense projected at $55.7 billion in 2026, reflecting higher technology, investment, and compensation costs, partially offset by efficiency initiatives.

• Medium-term ROTCE target set at 17%-18%.