Wells Fargo Shares rose on Wednesday after the bank reported better-than-expected earnings and issued strong guidance for 2025 net interest income.
The bank’s report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Adjusted earnings per share: $1.42 vs expected $1.35
- income: US$20.38 billion, expected US$20.59 billion
Net income was $5.1 billion, or $1.43 per diluted common share, 47% higher than last year’s fourth-quarter figure.
The San Francisco-based bank said it expects net interest income, a key measure of bank loan income, to be 1% to 3% higher in 2025 than in 2024 at $47.7 billion.
Wells Fargo’s stock price rose nearly 2% in pre-market trading on Wednesday following the release of the financial report.
“Our solid performance this quarter marks a significant year of progress for Wells Fargo,” Chief Executive Charlie Scharf said in a statement. “Our bottom line continues to improve, and we see our We maintain a strong balance sheet, we have returned approximately $25 billion of capital to shareholders, and we are maintaining a strong balance sheet as we reap the benefits of investments we make to fuel growth and improve how we serve our customers and communities. Significant progress has been made in the work.
Wells Fargo’s fourth-quarter investment banking fees increased 59% from the same period last year, reaching $725 million.
The bank repurchased 57.8 million shares of common stock, or $4 billion, in the fourth quarter of 2024.
The bank’s shares have soared nearly 43% in 2024 and are up 1.4% so far in January.
