Wells Fargo shares rose on Wednesday after the bank reported better-than-expected earnings and provided strong net interest income guidance for 2025.
Here's what the bank reported for the fourth quarter compared to Wall Street's expectations, based on an analyst survey by LSEG:
- Adjusted earnings per share: $1.58 versus expected $1.35
- Revenue: $20.38 billion versus $20.59 billion expected
Net income rose 47% to $5.1 billion, or $1.43 per share, compared with $3.45 billion, or 86 cents per share, a year earlier. Excluding severance costs of 15 cents per share, Well Fargo earned $1.58 per share, beating the consensus estimate reported by LSEG. Sales fell slightly compared to the previous year to $20.38 billion.
The San Francisco-based lender said it expects net interest income, a key measure of what a bank earns on loans, to be 1 percent to 3 percent higher in 2025 from $47.7 billion in 2024 become.
Wells shares rose 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 benefits of the investments we are making to increase our growth and improve the way we serve our customers and communities, we have maintained a strong balance sheet, we have around “Returned $25 billion of capital to shareholders and…”We have made significant progress in our risk and controls work.”
Wells Fargo's investment banking fees rose 59% year over year to $725 million in the fourth quarter.
The bank repurchased 57.8 million common shares, or $4 billion, 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. An earlier version of this story excluded other items from the quarterly results, but LSEG says analysts are only adjusting for severance costs.
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