Financial Performance - Total revenue for Q1 2025 was $20,149 million, a decrease of 1% from Q4 2024 and 3% from Q1 2024[4] - Wells Fargo net income for Q1 2025 was $4,894 million, down 4% from Q4 2024 but up 6% from Q1 2024[4] - Diluted earnings per common share for Q1 2025 were $1.39, a decrease of 3% from Q4 2024 and an increase of 16% from Q1 2024[4] - Net income applicable to common stock for Q1 2025 was $4,616 million, a decrease of 4% from Q4 2024 but an increase of 7% from Q1 2024[10] - Earnings per common share for Q1 2025 was $1.41, down 3% from Q4 2024 but up 17% from Q1 2024[10] Asset and Equity - Total equity increased to $182,906 million, a 1% rise from Q4 2024[8] - Total assets as of March 31, 2025, were $1,950,311 million, a 1% increase from Q4 2024[8] - Total assets as of March 31, 2025, were $1,919,661 million, slightly up from $1,918,536 million in the previous quarter[15] - Total equity as of Mar 31, 2025, is $182.9 billion, reflecting a 1% increase from $181.1 billion on Dec 31, 2024[56] Loans and Deposits - Average loans for Q1 2025 were $908,182 million, remaining stable compared to Q4 2024 but down 2% from Q1 2024[8] - Total deposits decreased to $1,361,728 million, down 1% from Q4 2024 and 2% from Q1 2024[13] - Total loans amounted to $315,973 million, a decrease of 2% from the previous quarter and 4% year-over-year[21] - Total loans outstanding as of March 31, 2025, were $913,842 million, reflecting a $1,097 million increase from the previous quarter[35] Income and Expenses - Interest income for Q1 2025 was $20,973 million, a decrease of 5% from Q4 2024 and 8% from Q1 2024[10] - Net interest income decreased to $11,495 million, down 3% from Q4 2024 and 6% from Q1 2024[10] - Noninterest expense for the quarter was $13,891 million, compared to $13,900 million in the previous quarter, indicating a marginal decrease[16] Credit Losses and Allowances - Provision for credit losses decreased to $932 million, a 15% decline from Q4 2024 and a 1% decrease from Q1 2024[4] - The allowance for loan losses was $14,029 million, a slight decrease of 1% from Q4 2024[13] - The provision for credit losses for loans was $925 million for the quarter, a decrease of $191 million from the previous quarter[38] - Total allowance for credit losses for loans is $14,552 million, representing 1.59% of loans as of March 31, 2025[40] Nonperforming Assets - Nonaccrual loans increased to $7,978 million, accounting for 0.87% of total loans as of March 31, 2025, up from $7,730 million (0.85%) in the previous quarter[42] - Total nonperforming assets reached $8,225 million, or 0.90% of total loans, an increase of $289 million from $7,936 million (0.87%) in the previous quarter[42] Segment Performance - Total revenue for the Commercial Banking Segment was $2,925 million, down 8% from the previous quarter and 7% year-over-year[25] - Net income for the Corporate and Investment Banking Segment rose to $1,941 million, a 23% increase from the previous quarter but down 2% year-over-year[29] - Net interest income for the Wealth and Investment Management segment decreased to $826 million, down 4% from the previous quarter and 5% year-over-year[32] Customer Metrics - Digital active customers reached 36.7 million, a 2% increase from the previous quarter and a 3% increase year-over-year[21] - Mortgage loan originations totaled $4.4 billion, a decrease of 25% from the previous quarter but an increase of 26% year-over-year[21] Capital Ratios - Common Equity Tier 1 (CET1) ratio was 11.1% for Q1 2025, unchanged from Q4 2024[8] - Return on average common stockholders' equity (ROE) for Q1 2025 is 11.5%, compared to 11.7% in Q4 2024[54] - Tangible common equity as of Mar 31, 2025, is $137.776 billion, up 2% from $135.628 billion in Q4 2024[54]

If you enjoyed this, consider Ian's Insider Corner to enjoy access to similar initiation reports for all the new stocks that we buy. Membership also includes an active chat room, weekly updates, and my responses to your questions.Earnings season has rolled around again. As is the custom, the big banks are set to kick things off with their Q1 results starting on Friday.Ian leads the investing group Ian's Insider Corner . Features of the group include: the Weekend Digest which covers everything from new ideas ...

I ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view. On Seeking Alpha I mostly cover REITs and financials, with occasional articles on ETFs and other stocks driven by a macro trade idea.Analyst’s D ...

Wells Fargo & Company (WFC) is slated to report first-quarter 2025 results on April 11, 2025, before market open.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Among Wells Fargo’s close peers, Bank of America (BAC) and Citigroup Inc. (C) are also slated to announce quarterly numbers on April 15. WFC’s fourth-quarter performance benefited from higher non-interest income. However, the decrease in net interest income (NII) was a spoilsport. The Zacks Consensus Estimate for first-quart ...

Wall Street analysts forecast that Wells Fargo (WFC) will report quarterly earnings of $1.23 per share in its upcoming release, pointing to a year-over-year decline of 2.4%. It is anticipated that revenues will amount to $20.8 billion, exhibiting a decline of 0.3% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projectio ...

Core Viewpoint - Wells Fargo (WFC) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended March 2025, with the consensus outlook indicating a potential impact on its near-term stock price [1][3]. Earnings Expectations - The consensus estimate for Wells Fargo's quarterly earnings is $1.23 per share, reflecting a year-over-year decrease of 2.4%, while revenues are projected to be $20.8 billion, down 0.3% from the previous year [3]. - The consensus EPS estimate has been revised 0.42% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows that the Most Accurate Estimate for Wells Fargo is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.53%, suggesting a likelihood of beating the consensus EPS estimate [10][11]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. Historical Performance - In the last reported quarter, Wells Fargo exceeded the expected earnings of $1.34 per share by delivering $1.42, resulting in a surprise of +5.97% [12]. - Over the past four quarters, Wells Fargo has consistently beaten consensus EPS estimates [13]. Conclusion - While Wells Fargo is positioned as a compelling earnings-beat candidate, it is essential to consider other factors that may influence stock performance beyond just earnings results [14][16].

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

Core Insights - Berkshire Hathaway's long-term relationship with Wells Fargo began in 1990 but faced challenges after the 2016 phony-accounts scandal, leading to a gradual exit from the investment by 2022 [1][2][8] - Wells Fargo has made significant progress in addressing regulatory issues, reducing consent orders from 12 to 3, and is on the verge of having its asset cap lifted, which would allow for balance sheet expansion [6][8] - Since Berkshire's exit, Wells Fargo's stock has increased by over 50%, reaching new all-time highs, raising questions about whether the decision to sell was premature [8][9] Company Developments - The scandal in 2016 resulted in billions in fines and a $1.95 trillion asset cap imposed by the Federal Reserve, hindering Wells Fargo's growth compared to peers [2] - Charles Scharf was hired in 2019 to lead the turnaround, implementing a new management team and regulatory infrastructure while cutting expenses and focusing on capital-light businesses [3][4] - As of early 2025, Wells Fargo has successfully terminated five consent orders, indicating progress in regulatory compliance [6] Regulatory Environment - The Trump administration's approach to deregulation may facilitate the removal of the asset cap, which has been a significant constraint on Wells Fargo's growth [7][10] - The bank's streamlined operations and potential removal of the asset cap position it for future growth and competitiveness in the banking sector [8]

Core Viewpoint - Wells Fargo & Company (WFC) is making significant progress in closing regulatory actions and strengthening its risk management and compliance infrastructure, which is central to its operational strategy in 2025 [1][5][6]. Regulatory Actions and Compliance - WFC has successfully closed five regulatory actions in 2025, including two consent orders from the Federal Reserve and two from the Office of the Comptroller of Currency [1]. - The bank's compliance framework is being enhanced under CEO Charlie Scharf, with improved risk management techniques receiving regulatory approval [5]. Financial Performance - WFC shares have increased by 6.2% year to date, outperforming the industry average of 3.6% and the S&P 500 index decline of 1.8% [2]. - The bank is currently under an asset cap of $1.95 trillion, which has limited its growth potential and loan growth [6][7]. Interest Income and Rate Environment - WFC's net interest income (NII) declined by 8% year over year to $47.7 billion in 2024, with the net interest margin (NIM) dropping to 2.73% from 3.06% in 2023 [8]. - Management anticipates a 1-3% growth in NII for 2025 compared to 2024 [10]. Expense Management - WFC is implementing cost-cutting measures, including streamlining its organizational structure and reducing branch numbers by 3% year over year to 4,177 in 2024 [13]. - The company plans to achieve $2.4 billion in gross expense reductions in 2025 through efficiency initiatives [15]. Capital Position and Shareholder Returns - As of December 31, 2024, WFC's long-term debt was $173.1 billion, with a liquidity coverage ratio of 125%, exceeding the regulatory minimum [16]. - The bank announced a 14% dividend hike to 40 cents per share in July 2024 and has a share repurchase program worth $30 billion [17][18]. Growth Outlook - WFC's progress in resolving compliance issues is expected to lead to the lifting of the asset cap, allowing for unrestricted loan offerings and supporting top-line expansion [19]. - Sales estimates for 2025 are projected at $85 billion, with a year-over-year growth estimate of 3.29% [21]. Valuation - WFC is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 12.19X, which is below the industry average of 13.14X [24]. - Compared to peers, WFC's P/E is higher than Bank of America's 11.30X but lower than JPMorgan's 13.64X [27].

Company Performance - Wells Fargo (WFC) closed at $71.11, with a +0.38% change from the previous day, outperforming the S&P 500's loss of 1.07% [1] - Over the past month, Wells Fargo shares have decreased by 11.43%, compared to the Finance sector's loss of 3.42% and the S&P 500's loss of 7.03% [1] Upcoming Financial Results - Wells Fargo is expected to report an EPS of $1.24, reflecting a 1.59% decrease from the prior-year quarter, with anticipated revenue of $20.82 billion, indicating a 0.21% decline from the same quarter last year [2] - For the annual period, the Zacks Consensus Estimates predict earnings of $5.87 per share and revenue of $85.05 billion, representing increases of +9.31% and +3.35% respectively from the previous year [3] Analyst Estimates and Rankings - Recent changes in analyst estimates for Wells Fargo are crucial for investors, as positive alterations indicate optimism regarding the company's business and profitability [3] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with stocks rated 1 averaging an annual return of +25% since 1988 [5] - Currently, Wells Fargo has a Zacks Rank of 3 (Hold), with a recent downward shift of 0.27% in the EPS estimate [5] Valuation Metrics - Wells Fargo has a Forward P/E ratio of 12.06, which is lower than the industry average Forward P/E of 13.9 [6] - The company also holds a PEG ratio of 1.06, indicating a valuation that considers expected earnings growth [6] Industry Context - The Financial - Investment Bank industry, part of the Finance sector, has a Zacks Industry Rank of 20, placing it in the top 8% of over 250 industries [7] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7]