Wells Fargo

WFC Q1 2025 Earnings

Reported Apr 11, 2025 at 6:45 AM ET · SEC Source

Q1 25 EPS

$1.39

BEAT +13.31%

Est. $1.23

Q1 25 Revenue

$20.15B

MISS 2.94%

Est. $20.76B

vs S&P Since Q1 25

-0.5%

TRAILING MARKET

WFC +34.5% vs S&P +35.0%

Market Reaction

Did WFC Beat Earnings? Q1 2025 Results

Wells Fargo delivered a notably strong first-quarter earnings beat on the bottom line, even as revenue fell short of expectations. The bank posted EPS of $1.39 against a consensus estimate of $1.23, a 13.31% beat, while revenue of $20.15 billion trai… Read more Wells Fargo delivered a notably strong first-quarter earnings beat on the bottom line, even as revenue fell short of expectations. The bank posted EPS of $1.39 against a consensus estimate of $1.23, a 13.31% beat, while revenue of $20.15 billion trailed the $20.76 billion estimate by 2.94% and dropped sharply year-over-year. The per-share outperformance was driven largely by an aggressive share buyback program that reduced diluted shares outstanding by 8%, combined with disciplined expense management and improved credit quality, with net charge-offs declining to 45 basis points from 50 a year ago. Net interest income remained under pressure, slipping 6% to $11.49 billion as rate cuts and deposit mix shifts weighed on margins. On the regulatory front, Wells Fargo closed five additional consent orders during the quarter, a milestone that reinforced confidence in the bank's long recovery arc. Management held its full-year guidance steady, projecting net interest income growth of 1% to 3% over 2024 and noninterest expense of approximately $54.20 billion, even as trade policy uncertainty clouds the broader economic outlook. Shareholders have benefited from the bank's commitment to returning capital through both buybacks and dividends.

Key Takeaways

  • Fee-based revenue growth across core businesses
  • 16% diluted EPS growth year-over-year
  • 8% reduction in diluted common shares through buybacks
  • Noninterest expense down 3% year-over-year from lower operating losses and efficiency initiatives
  • Net charge-offs declined 13% year-over-year to 0.45% of average loans annualized
  • Investment banking fees up 24% year-over-year on increased debt capital markets activity
  • Asset-based fees in Wealth and Investment Management up on higher market valuations
  • $263 million gain on sale of commercial non-agency third-party servicing business
  • $313 million discrete tax benefits reducing effective tax rate to 9.6%
  • Five consent orders closed during the quarter
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WFC YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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WFC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“We produced solid results with diluted earnings per share increasing 16% from a year ago reflecting fee-based revenue growth across many of our core businesses, continued expense discipline, improved credit results, and an 8% reduction in diluted common shares as we continued to return capital to shareholders. I am excited about the momentum we are building across our businesses as we work to build one of the most respected financial institutions in the country.”

— Charlie Scharf, Q1 2025 Earnings Press Release