From CNBC: 2025-04-11 15:21:00

Wells Fargo reported a mixed first quarter with total revenue falling 3.4% year over year to $20.15 billion, missing analyst expectations. Earnings per share of $1.39 exceeded estimates, excluding a gain from a sale. The stock is down 1% YTD. CEO Charlie Scharf has been making progress in the bank’s turnaround efforts, focusing on reducing costs and diversifying revenue streams.

Net Interest Income declined 6% due to lower interest rates, deposit mix changes, and fewer loans. Total deposits were down 1% from the previous quarter. Non-interest income was flat, with growth in certain areas offset by losses on debt securities. Non-interest expenses decreased by 3% to $13.9 billion. The bank repurchased $3.5 billion worth of stock.

Wells Fargo’s provisions for credit losses were $932 million, lower than expected. The bank’s guidance for 2025 includes 1-3% NII growth, but uncertainty around interest rates and tariffs may impact results. The company expects non-interest expenses to be around $54.2 billion. The removal of the Fed’s asset cap could be a significant catalyst for improved returns on capital.

CEO Charlie Scharf remains optimistic about the bank’s progress despite challenges from tariffs and trade wars. Wells Fargo has been focused on improving risk and controls, reducing costs, and investing in technology. The bank’s shares are down 10% YTD and may face difficulties in an economic downturn. The market has been volatile, with bank stocks reacting to external factors.



Read more at CNBC:: We trimmed our Wells Fargo price target after mixed Q1 earnings.