Wells Fargo Q4 Net Income Rises, Revenue Down Slightly; Issues 2025 Outlook

(RTTNews) - Wells Fargo (WFC) reported that its fourth quarter earnings per share increased 11% from a year ago. Net interest income decreased 7%, driven by deposit mix and pricing changes, the impact of lower rates on floating rate assets, and lower loan balances, partially offset by lower market funding. The company said strong fee-based revenue growth, up 15% from a year ago, largely offset the decline in net interest income. Noninterest income increased 11% from prior year.

Fourth quarter net income increased to $5.08 billion from $3.45 billion, prior year. Earnings per share was $1.43 compared to $0.86. Analysts on average expected the company to report profit per share of $1.35, for the quarter. Analysts' estimates typically exclude special items. The company noted that its fourth quarter results included: $863 million, or $0.26 per share, of discrete tax benefits related to the resolution of prior period matters; $647 million, or $0.15 per share, of severance expense, and $448 million, or $0.10 per share, of net losses on debt securities related to a repositioning of the investment portfolio.

Fourth quarter total revenue was $20.38 billion compared to $20.48 billion, last year. Analysts on average had estimated $20.58 billion in revenue.

For 2025, Wells Fargo anticipates net interest income to be approximately 1% to 3% higher than in 2024. The company noted that it has made significant progress improving returns and still believes has an achievable path to a sustainable ROTCE of 15%.

Shares of Wells Fargo are up 3% in pre-market trade on Wednesday.

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