Wells Fargo Q1 2025 Earnings Summary

Net income: $4.9 billion
Earnings per share (EPS): $1.39 (up 16% year-over-year)
Total revenue: $20.1 billion (down 3% year-over-year)
Return on equity (ROE): 11.5%
Return on tangible common equity (ROTCE): 13.6%
Net interest income: $11.5 billion (down 6%)
Noninterest income: $8.7 billion (flat year-over-year)
Efficiency ratio: 69%
CET1 ratio: 11.1%
Liquidity coverage ratio: 125%
Net charge-offs: $1.0 billion

Key items included in Q1 2025:
- $313 million discrete tax benefits from prior period resolution
- $263 million gain on sale of commercial mortgage servicing segment
- $149 million loss on debt securities repositioning

Segment highlights:

Consumer Banking and Lending:
- Net income: $1.69 billion (down 1%)
- Revenue: $8.91 billion (down 2%)
- Loan balances declined 4% year-over-year
- Deposit balances increased 1%
- Credit card revenue up 2%, auto lending down 21%
- Noninterest expense down 2% due to efficiency improvements

Commercial Banking:
- Net income: $794 million (down 19%)
- Revenue: $2.93 billion (down 7%)
- Net interest income declined 13%
- Noninterest income rose 8% on higher treasury and investment banking fees

Corporate and Investment Banking:
- Net income: $1.94 billion (down 2%)
- Revenue: $5.06 billion (up 2%)
- Investment banking revenue up 13%
- Commercial real estate revenue up 18%
- Markets revenue stable; strong results in commodities and FX

Wealth and Investment Management:
- Net income: $392 million (up 3%)
- Revenue: $3.87 billion (up 4%)
- Asset-based fees rose due to higher market valuations
- Client assets: $2.23 trillion (up 2%)
- Deposit balances up 22% year-over-year

Corporate:
- Net income: $78 million (compared to $435 million loss last year)
- Revenue dropped due to lower venture capital and securities results
- Noninterest expense down significantly, mainly due to lower FDIC assessments

Capital and shareholder return:
- Repurchased 44.5 million shares ($3.5 billion) in Q1
- Tangible common equity: $137.8 billion
- Total assets: $1.92 trillion (average)

CEO commentary:
Charlie Scharf highlighted strong EPS growth, efficiency improvements, and capital returns. He emphasized progress on risk and control infrastructure, noting that five consent orders were closed in the quarter. He acknowledged macro uncertainty due to trade policy and the economic environment but affirmed that Wells Fargo is well-positioned and remains focused on efficiency and transformation.

Wells Fargo announced that the Office of the Comptroller of the Currency (OCC) has terminated its 2021 consent order related to the company’s Home Lending loss mitigation practices. This marks the eleventh consent order closed by Wells Fargo’s regulators since 2019 and the fifth closure since the beginning of 2025.

CEO Charlie Scharf highlighted the progress made, stating that the termination was achieved in just three and a half years, a significant improvement compared to previous regulatory orders. He also reaffirmed the company’s confidence in completing the remaining consent order requirements.

Wells Fargo, with approximately $1.9 trillion in assets, operates across four main segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. The company ranked No. 34 on Fortune’s 2024 list of America’s largest corporations.

Wells Fargo & Company announced on January 28, 2025, that its 2022 consent order with the Consumer Financial Protection Bureau (CFPB) has been terminated. The consent order pertained to matters involving automobile lending, consumer deposit accounts, and mortgage lending.

The termination signifies that Wells Fargo has met the regulatory requirements stipulated under the consent order, reflecting progress in addressing prior compliance issues and improving oversight. This development marks an important step in the company's ongoing efforts to enhance operational accountability and strengthen its compliance framework.

Wells Fargo reported a solid financial performance for the fourth quarter of 2024, with a net income of $5.1 billion and a diluted earnings per share of $1.43. For the full year, the net income stood at $19.7 billion, translating to $5.37 per diluted share. The quarter witnessed a slight decrease in total revenue, from $20,478 million in the last quarter of 2023 to $20,378 million. This was accompanied by a reduction in noninterest expenses and a decrease in provisions for credit losses, highlighting improved operational efficiency and a stable credit environment.

During this quarter, average loans saw a decrease compared to the previous year, reflecting a broader industry trend of shrinking loan volumes. However, the bank experienced a notable increase in average deposits, underscoring a strong deposit base. Key performance metrics such as return on equity (ROE) and return on tangible common equity (ROTCE) showed significant improvements, indicating robust profitability and capital efficiency. The bank also returned substantial capital to shareholders, including $4.0 billion in common stock repurchases, underscoring its strong financial position.

Wells Fargo's CEO, Charlie Scharf, commented on the progress made throughout the year, emphasizing advancements in risk and control measures, growth in fee-based revenues, and strategic reductions in dependency on net interest income. The quarter also saw notable growth in wealth and investment management and consistent investments in enhancing digital capabilities. As the bank continues to navigate a complex regulatory environment and market challenges, its focus remains on strategic growth, operational resilience, and sustained profitability.