WFC's first-quarter 2025 results reflect a rise in non-interest income and a decline in expenses.
A slew of big financial names announced their quarterly reports before the bell this morning, including Wells Fargo & Co (NYSE:WFC).
The headline numbers for Wells Fargo (WFC) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Wells Fargo & Co (NYSE:WFC, ETR:NWT) shares edged lower before Friday's opening bell as the bank posted a year-over-year drop in revenue to $20.15 billion, short of analyst projections of $20.7 billion. Net Interest Income fell 6% from the year-ago quarter to $11.5 billion, attributed to lower interest rates, partially offset by reduced deposit pricing and increased balances.
Wells Fargo (WFC) came out with quarterly earnings of $1.27 per share, beating the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $1.26 per share a year ago.
Wells Fargo (WFC) reported better-than-expected quarterly earnings, though CEO Charlie Scharf said the bank is bracing for a slower economy this year amid worries President Donald Trump's tariffs could slow economic growth.
Wells Fargo booked a bigger profit in the first quarter, which ended just before President Trump's tariffs set off market turmoil.
I expect strong Q1 earnings from Wells Fargo, but I'm less upbeat for the remainder of the year. Investment banking activity is likely to slow down significantly in 2025, and credit risk could mount as well. Wells Fargo is making progress with regulators, and the share buyback is soaking up huge amounts of stock. These factors help drive a longer-term bullish view.
Wells Fargo derived 58% of its 2024 revenues from net interest income, higher than large peers but lower than most regional banks. The bank's provisioning is already quite conservative going into Q1 2025 earnings, but lower net interest income should weigh on profits. Even so, I expect Wells Fargo to maintain robust coverage of preferred share dividends.
JPMorgan Chase (JPM), Wells Fargo (WFC) and Morgan Stanley (MS) kick off big bank earnings on Friday. Bob Lang says the group has ways to go after falling below the 200-Day SMA.
WFC's Q1 results are likely to reflect the benefits of decent loan demand. Yet, weak asset quality and rising costs are expected to have hurt.
Evaluate the expected performance of Wells Fargo (WFC) for the quarter ended March 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.