Wells Fargo & Co (NYSE:WFC) reported fourth-quarter 2025 adjusted earnings that exceeded analyst expectations, but its shares slid about 2% after revenue came in below forecasts.
The U.S. lender posted adjusted earnings per share of $1.76, topping the consensus estimate of $1.66. Revenue for the quarter reached $21.29 billion, however, missing analysts’ expectations of $21.64 billion, despite representing a 4% year-on-year increase from $20.38 billion in the same period last year.
Net income totaled $5.4 billion, or $1.62 per diluted share, including a $612 million severance charge. Excluding this item, adjusted net income stood at $5.8 billion. Net interest income rose 4% from a year earlier to $12.33 billion, while noninterest income increased 5% to $8.96 billion.
“Strong financial performance, removal of the asset cap imposed by the Federal Reserve, termination of multiple consent orders, and stronger growth in both our consumer and commercial businesses make me proud of our 2025 results,” said Chairman and CEO Charlie Scharf.
Average loans grew 5% year on year to $955.8 billion, while average deposits increased 2% to $1.38 trillion. Credit quality improved, with net charge-offs falling 13% to $1.03 billion.
Wells Fargo maintained solid capital buffers, reporting a Common Equity Tier 1 (CET1) ratio of 10.6%, compared with 11.1% a year earlier. During the quarter, the bank bought back 58.2 million shares for $5.0 billion.
Scharf added, “We have built a strong foundation and have made great progress in improving growth and returns though we have operated with significant constraints. We are excited to now compete on a level playing field.”