Wells Fargo’s profit rose in Q2 as it set less money aside for bad loans, but shares fell 2.7% on lower interest income expectations. Analysts doubt ability to meet targets after slow start to 2025, despite NII growth forecast of 1-3%. Provision for credit losses fell to $1.01 billion, reflecting consumer and business loan repayments.

Wells Fargo’s net income for Q2 was $5.49 billion, or $1.60 a share, up from $4.91 billion a year ago. The U.S. Federal Reserve recently lifted the bank’s $1.95 trillion asset cap, allowing for unrestricted growth. With regulatory issues mostly resolved, Wells Fargo plans careful expansion in wholesale banking and other areas.

The bank has closed seven regulatory punishments this year and 13 since 2019, with one remaining consent order from 2018. CEO Scharf aims to grow carefully and attract more investors as profits increase. Wells Fargo plans to strengthen its wholesale businesses and increase market share in various banking sectors.

Read more at Yahoo Finance: Wells Fargo profit rises on lower bad loan provisions