Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Wells Fargo Shares rose on Wednesday after the bank posted better-than-expected earnings and issued strong guidance on net interest income for 2025.
Here’s what the bank said for the fourth quarter compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Adjusted profit per share: $1.58 vs $1.35 expected
- Revenue: $20.38 billion versus $20.59 billion expected
Net income rose 47% to $5.1 billion, or $1.43 per share, from $3.45 billion, or 86 cents per share, a year ago. After excluding separation costs of 15 cents per share, Well Fargo earned $1.58 per share, beating the consensus estimate reported by LSEG. Revenue fell slightly to $20.38 billion from a year earlier.
The San Francisco-based lender said it expects 2025 net interest income, a key measure of what a bank makes on loans, to be 1% to 3% higher than the number of $47.7 billion by 2024.
Wells shares jumped more than 5% on Wednesday.
“Our solid performance this quarter caps a year of significant progress for Wells Fargo,” CEO Charlie Scharf said in a statement. “Our earnings profile continues to improve, we see the benefit of the investments we make to increase our growth and improve the way we serve our customers and communities, we have maintained a strong balance sheet, we have returned approximately $25 billion of capital to shareholders, and we have made significant progress in our risk and control work.”
Wells Fargo’s investment banking fees jumped 59% to $725 million in the fourth quarter compared to a year earlier.
The bank repurchased 57.8 million shares, or $4 billion, of common stock in the fourth quarter of 2024.
The bank’s shares have risen nearly 43% in 2024, and the stock is up 6% so far in January.
Correction: Wells Fargo earned $1.58 per share on an adjusted basis. A previous version of this story excluded other elements from the quarterly result, however, analysts are only adjusting for separation costs, according to LSEG.
