Shares of Wells Fargo Rise After Earnings Beat Strong Guidance for 2025

Wells Fargo shares climbed on Wednesday after the bank posted stronger-than-expected fourth-quarter earnings and provided an upbeat outlook for 2025 net interest income.

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Fourth-Quarter Results

The San Francisco-based bank reported adjusted earnings per share of $1.58, surpassing analysts’ expectations of $1.35, according to a survey by LSEG. Revenue came in at $20.38 billion, slightly below the expected $20.59 billion.

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Wells Fargo announced it expects net interest income (NII)—a key measure of profitability based on the spread between loan interest and deposit costs—to grow by 1% to 3% in 2025. This growth would build on the bank’s 2024 NII of $47.7 billion, signaling confidence in its lending operations amid an improving economic backdrop.

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Shares of Wells Fargo jumped more than 5% on Wednesday in response to the earnings announcement and optimistic guidance.

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CEO Charlie Scharf highlighted the bank’s significant progress in 2024, noting improvements across various operational and financial metrics.

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“Our solid performance this quarter caps a year of significant progress for Wells Fargo,” Scharf said in a statement. “Our earnings profile continues to improve, we are seeing the benefit from investments we are making to increase our growth and improve how we serve our customers and communities. We maintained a strong balance sheet, returned approximately $25 billion of capital to shareholders, and made significant progress on our risk and control work.”

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One of the standout contributors to Wells Fargo’s fourth-quarter results was its investment banking division, which saw fees surge 59% to $725 million compared to the same quarter in 2023. This strong performance reflects the bank’s ability to capitalize on favorable market conditions.

Additionally, Wells Fargo returned significant value to shareholders in the fourth quarter by repurchasing 57.8 million shares, valued at $4 billion, of its common stock.

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Wells Fargo had an impressive year in 2024, with shares surging nearly 43% over the year. The positive momentum has continued into 2025, with the stock already up 6% in January.

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With a strong balance sheet, improving earnings, and continued investments in growth and risk management, Wells Fargo appears well-positioned for 2025. The bank’s optimistic NII guidance and focus on shareholder returns signal confidence in its ability to navigate the evolving economic landscape.

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Investors have reacted positively to Wells Fargo’s strong financial performance and forward-looking strategy, reinforcing the company’s position as a key player in the banking sector.

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