Wells Fargo raised its 2025 noninterest expenses forecast to $54.6 billion, up from $54.2 billion. The increase is due to higher severance expenses and revenue-related compensation costs of about $200 million each. Despite this, the bank maintained its guidance for 2025 net interest income to be in line with 2024’s $47.7 billion.

The higher expenses were driven by Wells Fargo’s wealth and investment management unit, which benefited from strong stock market performance. Net interest income (NII) is a key metric for banks, measuring the difference between interest paid on deposits and earned on interest-bearing assets. Wells Fargo’s NII guidance for 2025 remains consistent with 2024 levels.

Read more at Barron’s.: Wells Fargo Raises Estimates of 2025 Noninterest Expenses