Wells Fargo (WFC) shares fell after reporting mixed Q2 earnings, beating EPS and revenue but lowering full-year net interest income forecast. Analysts compare its performance to JPMorgan Chase & Co. WFC reported $1.60 EPS, $20.82B revenue, and expects NII in line with 2024 at $47.7B.

The lower NII was due to lower interest rates and deposit mix changes. UBS analyst noted JPMorgan’s strong revenue performance, beating estimates. WFC’s managed net revenue fell 10% to $45.68B YoY. The bank’s NII revision led to a weaker stock opening.

Wells Fargo’s NII fell below expectations due to decreased net interest margin. The bank’s revised full-year NII forecast matches 2024’s $47.7B. Analysts anticipate lower estimates by $150M or 3 cents per share, with core fee income remaining stable.

The market awaits details on Wells Fargo’s capital allocation post-stress test results. Analysts expect minimal specifics on buybacks, impacting stock weakness. WFC stock trades lower at $79.51. The market anticipates further details on capital allocation decisions.

Read more at Yahoo Finance: JPMorgan Flexes Revenue Muscle Again As Wells Fargo Battles NII Woes