Wells Fargo WFC earnings Q1 2025
Wells Fargo Bank saw a decline in its shares on Friday following the release of its first-quarter financial results, which fell short of Wall Street expectations. The bank reported adjusted earnings per share of $1.33, higher than the expected $1.24, but revenue came in at $20.15 billion, below the anticipated $20.75 billion.
Despite the earnings beat, Wells Fargo’s revenue for the quarter was down 3% from the same period last year, totaling $20.15 billion. The bank’s net income increased by 6% to $4.89 billion from $4.62 billion in the previous year. However, its net interest income, a crucial indicator of a bank’s profitability from loans, dropped by 6% year-over-year to $11.50 billion.
Noninterest income, which includes various fees and commissions, saw a slight increase of 1% to $8.65 billion compared to $8.64 billion in the previous year. CEO Charlie Scharf expressed concerns about the uncertainty in the economy due to the Trump administration’s trade policies, emphasizing the need for a timely resolution to benefit businesses, consumers, and the markets.
Wells Fargo repurchased 44.5 million of its own shares worth $3.5 billion in the first quarter. The bank also set aside $932 million as a provision for credit losses, which included a decrease in the allowance for credit losses.
In light of the results, Wells Fargo remains cautious about the economic environment in 2025, expecting continued volatility and uncertainty. The bank is bracing for a slower economic outlook, contingent on the outcomes and timing of policy changes.
Despite the mixed results, Wells Fargo’s performance in the first quarter reflects the ongoing challenges and opportunities facing the banking industry. Investors will be closely monitoring how the bank navigates the evolving economic landscape in the coming quarters.
