Wells Fargo & Company (NYSE:WFC) posted stronger-than-expected fourth-quarter earnings on Wednesday as net interest income and fees climbed, but the bank’s shares slipped premarket after revenue came in light.
Wells Fargo reported fourth-quarter 2025 net income of $5.4 billion, or $1.62 per diluted share, up from $5.1 billion, or $1.43 per share, a year earlier.
Results included $612 million in pre-tax severance expenses. Excluding those costs, adjusted net income rose to $5.8 billion. The bank reported fourth-quarter adjusted earnings of $1.76, beating the consensus of $1.67.
Revenue increased 4% year over year to $21.3 billion, supported by growth in both net interest and fee income. Analysts expected $21.65 billion.
Return on equity improved to 12.3% from 11.7%, while return on tangible common equity rose to 14.5% from 13.9%, reflecting stronger profitability and operating leverage.
Net Interest And Fee Income Trends
Net interest income increased 4% year over year to $12.3 billion, driven by higher loan and investment securities balances and fixed-rate asset repricing, partially offset by deposit mix changes. Noninterest income rose 5% to $9.0 billion, led by higher asset-based fees in Wealth and Investment Management, stronger card fees, and improved deposit-related revenue.
Segment Performance
Consumer Banking and Lending delivered a strong year-over-year performance, with total revenue rising 7%. Consumer, Small and Business Banking revenue increased 9%, benefiting from lower deposit pricing and higher deposit and loan balances. Credit card and auto lending revenue both rose 7% on higher loan balances and increased transaction activity, while home lending revenue declined 6% …