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Wells Fargo Posts Higher Q4 Profit as Post-Asset-Cap Growth Takes Hold

The quarter offers investors the first clear read on expansion since regulators lifted a long‑standing growth constraint last year.

Overview

  • Wells Fargo reported fourth‑quarter net income of $5.4 billion and earnings per share of $1.62 on revenue of $21.3 billion.
  • Management cited 20% growth in new credit card accounts, a 19% increase in auto lending balances, 12% commercial loan growth, and a 14% rise in investment banking fees as key drivers.
  • The bank guided for higher net interest income in 2026 and mid‑single‑digit growth in loans and deposits, contingent on a few Federal Reserve rate cuts and steady long‑term rates.
  • Leadership reiterated targets for a 17%–18% return on tangible common equity and a 10.0%–10.5% CET1 ratio to support more assertive capital deployment.
  • Quarterly results included a $0.14 per‑share severance impact and arrive as customer complaints continue to underscore reputational risk.