Core Insights - Bank of America reported a 23% increase in profit, indicating a strong start to the earnings season for the banking sector [1] - Wells Fargo's third-quarter earnings per share reached $1.66, surpassing analysts' expectations of $1.55, with revenue of $21.4 billion compared to the forecast of $21.1 billion [1] Financial Performance - Wells Fargo's net interest income rose by 2% year over year to $11.9 billion for the third quarter, highlighting its key performance metric [2] - The bank's shares increased by 1.6% in premarket trading following the earnings report [2]

Core Viewpoint - Wells Fargo reported a third-quarter net interest income of $11.95 billion, slightly below market expectations of $12.01 billion, and anticipates fourth-quarter net interest income to be between $12.4 billion and $12.5 billion, indicating a resilient U.S. economy and stable financial conditions for customers [1] Financial Performance - Third-quarter net interest income was $11.95 billion, compared to market expectations of $12.01 billion [1] - Projected fourth-quarter net interest income is expected to be between $12.4 billion and $12.5 billion [1] Economic Outlook - Wells Fargo stated that the U.S. economy has been performing robustly [1] - The financial condition of customers remains stable [1]

SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo & Company (NYSE: WFC) has released its third quarter 2025 financial results. The financial results are available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and on a Form 8-K filed by the company with the Securities and Exchange Commission (SEC) on Oct. 14, 2025, and available on the SEC's website at https://www.sec.gov. Conference call The company will host a live conference call on Tuesday, Oct. 14, at 10:00. ...

Wells Fargo raises a key profitability metric, after the removal of regulatory restraints it had operated under for more than seven years https://t.co/zXal2KkMEs ...

Wells Fargo's profit rose in the third quarter on higher income from interest payments. ...

[Consolidated Results](index=3&type=section&id=Consolidated%20Results) [Summary Financial Data](index=3&type=section&id=Summary%20Financial%20Data) Wells Fargo & Company reported strong financial performance for Q3 2025, with total revenue increasing by 3% QoQ and 5% YoY, and net income applicable to common stock growing by 2% QoQ and 10% YoY. Diluted EPS rose by 4% QoQ and 17% YoY. The company also saw increases in average loans and assets, while maintaining stable capital ratios **Selected Income Statement Data (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total revenue | $21,436M | $20,822M | $20,366M | 3% | 5% | | Noninterest expense | $13,846M | $13,379M | $13,067M | 3% | 6% | | Pre-tax pre-provision profit (PTPP) | $7,590M | $7,443M | $7,299M | 2% | 4% | | Provision for credit losses | $681M | $1,005M | $1,065M | (32)% | (36)% | | Wells Fargo net income | $5,589M | $5,494M | $5,114M | 2% | 9% | | Wells Fargo net income applicable to common stock | $5,341M | $5,214M | $4,852M | 2% | 10% | | Diluted earnings per common share | $1.66 | $1.60 | $1.42 | 4% | 17% | | Dividends declared per common share | $0.45 | $0.40 | $0.40 | 13% | 13% | | Book value per common share | $52.30 | $51.13 | $49.26 | 2% | 6% | | Tangible book value per common share | $44.18 | $43.18 | $41.76 | 2% | 6% | **Selected Balance Sheet Data (Period-End Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Loans | $943,102M | $924,418M | $909,711M | 2% | 4% | | Assets | $2,062,926M | $1,981,269M | $1,922,125M | 4% | 7% | | Deposits | $1,367,361M | $1,340,703M | $1,349,646M | 2% | 1% | | Headcount | 210,821 | 212,804 | 220,167 | (1)% | (4)% | | Common Equity Tier 1 (CET1) - Standardized | 11.0% | 11.1% | 11.3% | - | - | | Tier 1 leverage ratio | 7.7% | 8.0% | 8.3% | - | - | | Supplementary Leverage Ratio (SLR) | 6.4% | 6.7% | 6.9% | - | - | - Provision for credit losses decreased significantly by **32% QoQ** and **36% YoY**, indicating improved credit quality or a more favorable economic outlook[4](index=4&type=chunk) [Consolidated Statement of Income](index=5&type=section&id=Consolidated%20Statement%20of%20Income) The consolidated statement of income shows a 3% QoQ increase in total revenue, driven by a 5% increase in interest income and a 4% increase in total noninterest income. Net interest income also grew by 2% QoQ. Noninterest expense increased by 3% QoQ, primarily due to personnel expenses **Consolidated Statement of Income (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Interest income | $22,419M | $21,320M | $22,998M | 5% | (3)% | | Interest expense | $10,469M | $9,612M | $11,308M | 9% | (7)% | | Net interest income | $11,950M | $11,708M | $11,690M | 2% | 2% | | Total noninterest income | $9,486M | $9,114M | $8,676M | 4% | 9% | | Total revenue | $21,436M | $20,822M | $20,366M | 3% | 5% | | Provision for credit losses | $681M | $1,005M | $1,065M | (32)% | (36)% | | Total noninterest expense | $13,846M | $13,379M | $13,067M | 3% | 6% | | Income before income tax expense | $6,909M | $6,438M | $6,234M | 7% | 11% | | Wells Fargo net income | $5,589M | $5,494M | $5,114M | 2% | 9% | - Investment banking fees showed significant growth, increasing by **21% QoQ** and **25% YoY**, contributing to the overall noninterest income growth[12](index=12&type=chunk) - Card fees increased by **4% QoQ** and **12% YoY**, partly due to the acquisition of the remaining interest in the merchant services joint venture in April 2025, which now includes its revenue in card fees[12](index=12&type=chunk) [Consolidated Balance Sheet](index=6&type=section&id=Consolidated%20Balance%20Sheet) The consolidated balance sheet at September 30, 2025, shows a 4% QoQ increase in total assets, primarily driven by increases in federal funds sold and securities purchased under resale agreements, and debt securities. Total liabilities also increased by 5% QoQ, mainly due to a 23% rise in short-term borrowings. Total equity remained stable QoQ **Consolidated Balance Sheet (Period-End Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total assets | $2,062,926M | $1,981,269M | $1,922,125M | 4% | 7% | | Loans | $943,102M | $924,418M | $909,711M | 2% | 4% | | Debt securities (Trading, AFS, HTM) | $578,143M | $533,916M | $529,832M | 8% | 9% | | Total deposits | $1,367,361M | $1,340,703M | $1,349,646M | 2% | 1% | | Short-term borrowings | $230,649M | $187,995M | $111,894M | 23% | 106% | | Total liabilities | $1,879,914M | $1,798,315M | $1,737,114M | 5% | 8% | | Total equity | $183,012M | $182,954M | $185,011M | 0% | (1)% | | Treasury stock | $(123,148)M | $(117,244)M | $(107,479)M | (5)% | (15)% | - Federal funds sold and securities purchased under resale agreements increased by **47% QoQ** and **47% YoY**, indicating increased liquidity management activities[15](index=15&type=chunk) [Average Balances and Interest Rates (Taxable-Equivalent Basis)](index=7&type=section&id=Average%20Balances%20and%20Interest%20Rates%20%28Taxable-Equivalent%20Basis%29) Average interest-earning assets increased by 4% QoQ, primarily driven by federal funds sold and securities purchased under resale agreements. Total interest-bearing liabilities also increased by 6% QoQ, mainly due to a 43% rise in short-term borrowings. The net interest margin on a taxable-equivalent basis slightly decreased to 2.61% from 2.68% QoQ **Average Balances (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total interest-earning assets | $1,832,510M | $1,762,160M | $1,754,068M | 4% | 4% | | Loans | $928,677M | $916,719M | $910,255M | 1% | 2% | | Total interest-bearing liabilities | $1,414,181M | $1,334,659M | $1,314,429M | 6% | 8% | | Interest-bearing deposits | $984,197M | $970,684M | $986,206M | 1% | 0% | | Short-term borrowings | $211,959M | $147,917M | $109,902M | 43% | 93% | **Average Interest Rates (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total interest-earning assets | 4.88% | 4.87% | 5.24% | | Loans | 5.97% | 5.95% | 6.41% | | Total interest-bearing liabilities | 2.94% | 2.89% | 3.43% | | Interest-bearing deposits | 2.09% | 2.09% | 2.60% | | Net interest margin on a taxable-equivalent basis | 2.61% | 2.68% | 2.67% | - The average interest rate on total interest-earning assets remained stable QoQ at **4.88%**, while the rate on total interest-bearing liabilities increased to **2.94%** from **2.89% QoQ**[17](index=17&type=chunk) [Reportable Operating Segment Results](index=8&type=section&id=Reportable%20Operating%20Segment%20Results) [Combined Segment Results](index=8&type=section&id=Combined%20Segment%20Results) In Q3 2025, all reportable operating segments except Corporate reported positive net income. Consumer Banking and Lending, Commercial Banking, and Corporate and Investment Banking were the largest contributors to net income. Total revenue increased across most segments QoQ, with Corporate and Investment Banking showing the highest growth **Combined Segment Net Income (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Segment | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Consumer Banking and Lending | $2,185M | $1,863M | $1,924M | | Commercial Banking | $1,162M | $1,086M | $1,318M | | Corporate and Investment Banking | $1,966M | $1,737M | $1,992M | | Wealth and Investment Management | $591M | $480M | $529M | | Corporate | $(315)M | $328M | $(649)M | | Consolidated Company | $5,589M | $5,494M | $5,114M | **Combined Segment Total Revenue (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Segment | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Consumer Banking and Lending | $9,650M | $9,228M | $9,124M | | Commercial Banking | $3,041M | $2,933M | $3,333M | | Corporate and Investment Banking | $4,879M | $4,673M | $4,911M | | Wealth and Investment Management | $4,196M | $3,898M | $3,878M | | Corporate | $176M | $559M | $(337)M | | Consolidated Company | $21,436M | $20,822M | $20,366M | - The Corporate segment reported a net loss of **$315 million** in Q3 2025, a significant decrease from a net income of **$328 million** in Q2 2025, but an improvement from a loss of **$649 million** in Q3 2024[18](index=18&type=chunk) [Consumer Banking and Lending Segment](index=10&type=section&id=Consumer%20Banking%20and%20Lending) The Consumer Banking and Lending segment reported a 14% QoQ increase in net income to $2,185 million, driven by higher total revenue and a decrease in provision for credit losses. Total revenue grew by 5% QoQ, with significant increases in card fees and mortgage banking. Average total loans increased by 3% YoY, while average total deposits remained stable **Consumer Banking and Lending Income Statement (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $7,505M | $7,199M | $7,149M | 4% | 5% | | Total noninterest income | $2,145M | $2,029M | $1,975M | 6% | 9% | | Total revenue | $9,650M | $9,228M | $9,124M | 5% | 6% | | Provision for credit losses | $767M | $945M | $930M | (19)% | (18)% | | Net income | $2,185M | $1,863M | $1,924M | 17% | 14% | **Consumer Banking and Lending Selected Metrics (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Return on allocated capital | 18.5% | 15.9% | 16.3% | | Efficiency ratio | 62% | 63% | 62% | | Digital active customers ( in millions) | 37.0 | 36.6 | 35.8 | | Mobile active customers ( in millions) | 32.5 | 32.1 | 31.2 | | Credit card purchase volume ($ in billions) | $47.4 | $46.4 | $43.4 | | Auto loan originations ($ in billions) | $8.8 | $6.9 | $4.1 | - In Q3 2025, approximately **$8 billion** of loans and **$6 billion** of deposits were prospectively transferred from Commercial Banking to Consumer, Small and Business Banking within this segment[27](index=27&type=chunk) [Commercial Banking Segment](index=12&type=section&id=Commercial%20Banking) The Commercial Banking segment's net income increased by 7% QoQ to $1,162 million, despite a 2% QoQ decrease in net interest income and a 9% YoY decrease in total revenue. The segment saw a significant 191% QoQ increase in provision for credit losses, though it remained lower YoY. Average total loans decreased by 3% QoQ, partly due to a transfer of certain business customers **Commercial Banking Income Statement (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $1,949M | $1,983M | $2,289M | (2)% | (15)% | | Total noninterest income | $1,092M | $950M | $1,044M | 15% | 5% | | Total revenue | $3,041M | $2,933M | $3,333M | 4% | (9)% | | Provision for credit losses | $39M | $(43)M | $85M | 191% | (54)% | | Net income | $1,162M | $1,086M | $1,318M | 7% | (12)% | **Commercial Banking Selected Balance Sheet Data (Average, Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial and industrial loans | $166,946M | $167,134M | $161,967M | 0% | 3% | | Commercial real estate loans | $37,605M | $44,373M | $44,756M | (15)% | (16)% | | Total loans | $219,356M | $226,461M | $222,116M | (3)% | (1)% | | Total deposits | $171,976M | $177,994M | $173,158M | (3)% | (1)% | - The decrease in Commercial Real Estate loans by **15% QoQ** and **16% YoY** significantly impacted the total loan portfolio for the segment[34](index=34&type=chunk) [Corporate and Investment Banking Segment](index=14&type=section&id=Corporate%20and%20Investment%20Banking) The Corporate and Investment Banking segment reported a 13% QoQ increase in net income to $1,966 million, driven by a 4% QoQ increase in total revenue. Investment banking fees saw a substantial 18% QoQ and 24% YoY growth. Average total loans increased by 4% QoQ and 8% YoY, with significant growth in Markets loans **Corporate and Investment Banking Income Statement (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $1,870M | $1,815M | $1,909M | 3% | (2)% | | Total noninterest income | $3,009M | $2,858M | $3,002M | 5% | 0% | | Total revenue | $4,879M | $4,673M | $4,911M | 4% | (1)% | | Provision for credit losses | $(107)M | $103M | $26M | NM | NM | | Net income | $1,966M | $1,737M | $1,992M | 13% | (1)% | **Corporate and Investment Banking Selected Balance Sheet Data (Average, Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial and industrial loans | $214,774M | $202,473M | $183,255M | 6% | 17% | | Commercial real estate loans | $81,121M | $83,413M | $91,963M | (3)% | (12)% | | Total loans | $295,895M | $285,886M | $275,218M | 4% | 8% | | Total trading-related assets | $306,440M | $274,599M | $234,210M | 12% | 31% | | Total deposits | $204,056M | $202,420M | $194,315M | 1% | 5% | - Net gains from trading activities increased by **16% QoQ** and **4% YoY**, contributing to the segment's noninterest income[36](index=36&type=chunk) [Wealth and Investment Management Segment](index=16&type=section&id=Wealth%20and%20Investment%20Management) The Wealth and Investment Management segment's net income increased by 23% QoQ and 12% YoY to $591 million, driven by an 8% QoQ and 8% YoY increase in total revenue. Investment advisory and other asset-based fees grew by 7% QoQ and 8% YoY. Total client assets increased by 5% QoQ and 8% YoY, reaching $2,473 billion **Wealth and Investment Management Income Statement (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $974M | $891M | $842M | 9% | 16% | | Total noninterest income | $3,222M | $3,007M | $3,036M | 7% | 6% | | Total revenue | $4,196M | $3,898M | $3,878M | 8% | 8% | | Provision for credit losses | $(14)M | $12M | $16M | NM | NM | | Net income | $591M | $480M | $529M | 23% | 12% | **Wealth and Investment Management Selected Metrics (Period-End Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Return on allocated capital | 35.1% | 28.7% | 31.5% | | Efficiency ratio | 82% | 83% | 81% | | Total client assets ($ in billions) | $2,473 | $2,346 | $2,294 | | Total loans (average) | $86,150M | $84,871M | $82,797M | | Total deposits (average) | $127,377M | $123,611M | $107,991M | - Advisory assets increased by **6% QoQ** and **11% YoY**, reaching **$1,104 billion**, contributing to the growth in investment advisory fees[40](index=40&type=chunk) [Corporate Segment](index=17&type=section&id=Corporate) The Corporate segment reported a net loss of $315 million in Q3 2025, a significant decline from a net income of $328 million in Q2 2025, primarily due to a 69% QoQ decrease in total revenue and a 41% YoY increase in income tax benefit. Noninterest expense increased by 15% QoQ. Average total deposits decreased significantly by 40% YoY **Corporate Segment Income Statement (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $(273)M | $(103)M | $(415)M | NM | 34% | | Total noninterest income | $449M | $662M | $78M | (32)% | 476% | | Total revenue | $176M | $559M | $(337)M | (69)% | 152% | | Provision for credit losses | $(4)M | $(12)M | $8M | 67% | NM | | Noninterest expense | $650M | $565M | $580M | 15% | 12% | | Net income (loss) | $(315)M | $328M | $(649)M | NM | 51% | **Corporate Segment Selected Balance Sheet Data (Average, Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Available-for-sale debt securities | $188,103M | $172,879M | $147,093M | 9% | 28% | | Held-to-maturity debt securities | $214,409M | $220,364M | $242,621M | (3)% | (12)% | | Total assets | $636,359M | $601,010M | $648,930M | 6% | (2)% | | Total deposits | $55,201M | $46,242M | $92,662M | 19% | (40)% | - The Corporate segment includes corporate treasury and enterprise functions, investment portfolio, and venture capital/private equity investments, as well as results for previously divested businesses[41](index=41&type=chunk) [Credit-Related Information](index=18&type=section&id=Credit-Related%20Information) [Consolidated Loans Outstanding – Period-End Balances, Average Balances, and Average Interest Rates](index=18&type=section&id=Consolidated%20Loans%20Outstanding%20%E2%80%93%20Period-End%20Balances%2C%20Average%20Balances%2C%20and%20Average%20Interest%20Rates) Consolidated period-end loans increased by 2% QoQ and 4% YoY to $943,102 million, driven by growth in commercial and industrial loans and consumer loans (credit card, auto, other consumer). Commercial real estate loans continued to decline. Average interest rates on total loans remained stable QoQ at 5.97% **Period-End Loans (Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Loan Type | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | $ Change QoQ | $ Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial and industrial | $417,904M | $402,150M | $372,750M | $15,754M | $45,154M | | Commercial real estate | $130,250M | $132,560M | $141,410M | $(2,310)M | $(11,160)M | | Total commercial | $563,465M | $549,770M | $530,642M | $13,695M | $32,823M | | Residential mortgage | $243,910M | $245,755M | $252,676M | $(1,845)M | $(8,766)M | | Credit card | $56,996M | $55,318M | $55,046M | $1,678M | $1,950M | | Auto | $46,041M | $42,878M | $42,815M | $3,163M | $3,226M | | Other consumer | $32,690M | $30,697M | $28,532M | $1,993M | $4,158M | | Total consumer | $379,637M | $374,648M | $379,069M | $4,989M | $568M | | Total loans | $943,102M | $924,418M | $909,711M | $18,684M | $33,391M | **Average Interest Rates on Loans (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Loan Type | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Commercial and industrial | 6.26% | 6.29% | 7.16% | | Commercial real estate | 6.15% | 6.17% | 6.90% | | Credit card | 12.70% | 12.65% | 12.73% | | Auto | 5.59% | 5.48% | 5.22% | | Total loans | 5.97% | 5.95% | 6.41% | [Net Loan Charge-offs](index=19&type=section&id=Net%20Loan%20Charge-offs) Total net loan charge-offs decreased by 5% QoQ and 15% YoY to $942 million in Q3 2025. This reduction was primarily driven by lower charge-offs in credit card and other consumer loans. Commercial real estate charge-offs increased QoQ but decreased significantly YoY **Net Loan Charge-offs by Product (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Product | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | $ Change QoQ | $ Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial and industrial | $131M | $179M | $129M | $(48)M | $2M | | Commercial real estate | $107M | $61M | $184M | $46M | $(77)M | | Total commercial | $250M | $247M | $323M | $3M | $(73)M | | Credit card | $571M | $622M | $601M | $(51)M | $(30)M | | Auto | $50M | $30M | $83M | $20M | $(33)M | | Other consumer | $93M | $101M | $127M | $(8)M | $(34)M | | Total consumer | $692M | $750M | $788M | $(58)M | $(96)M | | Total net loan charge-offs | $942M | $997M | $1,111M | $(55)M | $(169)M | **Net Loan Charge-offs by Segment (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Segment | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Consumer Banking and Lending | $766M | $818M | $871M | | Commercial Banking | $83M | $98M | $50M | | Corporate and Investing Banking | $94M | $75M | $196M | | Wealth and Investment Management | $(1)M | $6M | $(5)M | | Total net loan charge-offs | $942M | $997M | $1,111M | [Changes in Allowance for Credit Losses for Loans](index=20&type=section&id=Changes%20in%20Allowance%20for%20Credit%20Losses%20for%20Loans) The allowance for credit losses for loans decreased by 2% QoQ and 3% YoY to $14,311 million at period-end September 30, 2025. This was primarily due to a decrease in the provision for credit losses and lower net loan charge-offs. The allowance for loan losses as a percentage of total loans was 1.46% **Changes in Allowance for Credit Losses for Loans (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | $ Change QoQ | $ Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Balance, beginning of period | $14,568M | $14,552M | $14,789M | $16M | $(221)M | | Provision for credit losses for loans | $687M | $1,007M | $1,059M | $(320)M | $(372)M | | Net loan charge-offs | $(942)M | $(997)M | $(1,111)M | $55M | $169M | | Balance, end of period | $14,311M | $14,568M | $14,739M | $(257)M | $(428)M | | Allowance for loan losses to total net loan charge-offs (annualized) | 3.68x | 3.49x | 3.24x | - | - | | Allowance for loan losses as a percentage of total loans | 1.46% | 1.51% | 1.58% | - | - | - The ratio of allowance for loan losses to total net loan charge-offs improved to **3.68x**, indicating a stronger coverage of potential losses[46](index=46&type=chunk) [Allocation of the Allowance for Credit Losses for Loans](index=21&type=section&id=Allocation%20of%20the%20Allowance%20for%20Credit%20Losses%20for%20Loans) The allocation of allowance for credit losses (ACL) for loans shows that commercial loans account for 52.8% of the total ACL, while consumer loans account for 47.2%. Commercial real estate loans have the highest ACL as a percentage of loan class at 2.28%, followed by credit card loans at 8.61% **Allocation of Allowance for Credit Losses for Loans by Product (Sep 30, 2025):** | Product | ACL ($ in millions) | ACL as % of loan class | | :-------------------------------- | :------------------ | :--------------------- | | Commercial and industrial | $4,376 | 1.05% | | Commercial real estate | $2,965 | 2.28% | | Lease financing | $211 | 1.38% | | Total commercial | $7,552 | 1.34% | | Residential mortgage | $569 | 0.23% | | Credit card | $4,907 | 8.61% | | Auto | $717 | 1.56% | | Other consumer | $566 | 1.73% | | Total consumer | $6,759 | 1.78% | | Total allowance for credit losses for loans | $14,311 | 1.52% | **Allocation of Allowance for Credit Losses for Loans by Segment (Sep 30, 2025):** | Segment | ACL ($ in millions) | ACL as % of loan class | | :-------------------------------- | :------------------ | :--------------------- | | Consumer Banking and Lending | $7,599 | 2.32% | | Commercial Banking | $2,184 | 0.98% | | Corporate and Investing Banking | $4,275 | 1.41% | | Wealth and Investment Management | $251 | 0.29% | | Corporate | $2 | 0.22% | | Total allowance for credit losses for loans | $14,311 | 1.52% | [Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)](index=22&type=section&id=Nonperforming%20Assets%20%28Nonaccrual%20Loans%20and%20Foreclosed%20Assets%29) Total nonperforming assets decreased by 2% QoQ and 7% YoY to $7,832 million at September 30, 2025. This reduction was primarily driven by a decrease in commercial real estate nonaccrual loans. Nonaccrual loans as a percentage of total loans stood at 0.81% **Nonaccrual Loans by Product (Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Product | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | $ Change QoQ | $ Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial and industrial | $1,050M | $925M | $743M | $125M | $307M | | Commercial real estate | $3,334M | $3,556M | $4,115M | $(222)M | $(781)M | | Total commercial | $4,459M | $4,563M | $4,952M | $(104)M | $(493)M | | Residential mortgage | $3,057M | $3,090M | $3,086M | $(33)M | $(29)M | | Total consumer | $3,155M | $3,194M | $3,220M | $(39)M | $(65)M | | Total nonaccrual loans | $7,614M | $7,757M | $8,172M | $(143)M | $(558)M | | Foreclosed assets | $218M | $207M | $212M | $11M | $6M | | Total nonperforming assets | $7,832M | $7,964M | $8,384M | $(132)M | $(552)M | - Nonaccrual loans in the Corporate and Investment Banking segment decreased by **$636 million YoY**, contributing significantly to the overall reduction in nonperforming assets[49](index=49&type=chunk) [Commercial Loan Portfolio – Commercial and Industrial Loans and Lease Financing by Industry and Commercial Real Estate Loans by Property Type](index=23&type=section&id=Commercial%20Loan%20Portfolio%20%E2%80%93%20Commercial%20and%20Industrial%20Loans%20and%20Lease%20Financing%20by%20Industry%20and%20Commercial%20Real%20Estate%20Loans%20by%20Property%20Type) The commercial loan portfolio shows that 'Financials except banks' is the largest industry for commercial and industrial loans and lease financing, with $183,637 million outstanding. For commercial real estate loans, 'Apartments' represent the largest property type with $37,677 million outstanding. Nonaccrual loans for 'Office' property type remain the highest at $2,450 million **Commercial and Industrial Loans and Lease Financing by Industry (Sep 30, 2025):** | Industry | Nonaccrual loans | Loans outstanding balance | Total commitments | | :-------------------------------- | :--------------- | :------------------------ | :---------------- | | Financials except banks | $165M | $183,637M | $293,425M | | Technology, telecom and media | $117M | $25,353M | $65,988M | | Real estate and construction | $70M | $29,329M | $60,547M | | Retail | $85M | $20,454M | $43,224M | | Materials and commodities | $104M | $14,217M | $34,747M | | Total commercial and industrial loans and lease financing | $1,125M | $433,215M | $850,945M | **Commercial Real Estate Loans by Property Type (Sep 30, 2025):** | Property Type | Nonaccrual loans | Loans outstanding balance | Total commitments | | :-------------------------------- | :--------------- | :------------------------ | :---------------- | | Apartments | $287M | $37,677M | $41,732M | | Industrial/warehouse | $46M | $23,854M | $30,020M | | Office | $2,450M | $23,670M | $24,613M | | Hotel/motel | $289M | $11,882M | $12,262M | | Retail (excluding shopping center) | $96M | $10,714M | $11,687M | | Total commercial real estate loans | $3,334M | $130,250M | $145,354M | - Nonaccrual loans for the 'Office' property type within Commercial Real Estate decreased by **$800 million YoY**, but still represent the largest portion of nonaccrual CRE loans[51](index=51&type=chunk) [Equity](index=24&type=section&id=Equity) [Tangible Common Equity](index=24&type=section&id=Tangible%20Common%20Equity) Tangible common equity (TCE), a non-GAAP measure, remained stable QoQ at $139,119 million at September 30, 2025. Tangible book value per common share increased by 2% QoQ to $44.18. Return on average tangible common equity (ROTCE) was 15.2% for Q3 2025, consistent with the prior quarter and up from 13.9% YoY **Tangible Book Value per Common Share Reconciliation (Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total equity | $183,012M | $182,954M | $185,011M | 0% | (1)% | | Total common stockholders' equity | $164,687M | $164,644M | $164,801M | 0% | 0% | | Tangible common equity | $139,119M | $139,057M | $139,711M | 0% | 0% | | Common shares outstanding (in millions) | 3,148.9 | 3,220.4 | 3,345.5 | (2)% | (6)% | | Book value per common share | $52.30 | $51.13 | $49.26 | 2% | 6% | | Tangible book value per common share | $44.18 | $43.18 | $41.76 | 2% | 6% | **Return on Average Tangible Common Equity (ROTCE) Reconciliation (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Net income applicable to common stock | $5,341M | $5,214M | $4,852M | | Average tangible common equity | $139,539M | $137,697M | $139,346M | | Return on average common stockholders' equity (ROE) | 12.8% | 12.8% | 11.7% | | Return on average tangible common equity (ROTCE) | 15.2% | 15.2% | 13.9% | [Risk-Based Capital Ratios Under Basel III](index=26&type=section&id=Risk-Based%20Capital%20Ratios%20Under%20Basel%20III) Wells Fargo maintained strong capital adequacy under Basel III in Q3 2025. The Common Equity Tier 1 (CET1) ratio under the Standardized Approach was 11.0%, slightly down from 11.1% QoQ, and 12.7% under the Advanced Approach, stable QoQ. Total risk-weighted assets (RWAs) increased by 1% QoQ under the Standardized Approach **Risk-Based Capital Ratios Under Basel III (Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Common Equity Tier 1 (CET1) - Standardized Approach | 11.0% | 11.1% | 11.3% | | Tier 1 capital - Standardized Approach | 12.3% | 12.5% | 12.8% | | Total capital - Standardized Approach | 14.8% | 15.0% | 15.5% | | Risk-weighted assets (RWAs) - Standardized Approach ($ in billions) | $1,243.8 | $1,225.9 | $1,219.9 | | Common Equity Tier 1 (CET1) - Advanced Approach | 12.7% | 12.7% | 12.7% | | Tier 1 capital - Advanced Approach | 14.2% | 14.3% | 14.4% | | Total capital - Advanced Approach | 16.2% | 16.2% | 16.4% | | Risk-weighted assets (RWAs) - Advanced Approach ($ in billions) | $1,072.8 | $1,070.4 | $1,089.3 | - The company must calculate its CET1, Tier 1, and total capital ratios under both the Standardized and Advanced Approaches, as per Basel III capital rules[57](index=57&type=chunk)

Investment Rating - The report does not explicitly state an investment rating for the banking industry in 2025 [2] Core Insights - The Chinese banking industry is expected to achieve growth in performance and risk control in 2025, supported by favorable macroeconomic conditions and coordinated monetary and fiscal policies [9][14] - The banking sector is facing challenges such as narrowing net interest margins, rising non-performing loans, and increased competition from fintech companies [10][12] - The report emphasizes the importance of digital transformation and refined management in retail banking, as well as the need for banks to adapt to new consumer demands [11][14] Summary by Sections Macroeconomic and Financial Situation Review - In the first half of 2025, China's GDP grew by 5.3%, outperforming market expectations, driven by a recovery in consumption and investment [9][21] - The global economic recovery remains uneven, with geopolitical tensions and inflationary pressures posing challenges [8][19] - Domestic policies have focused on expanding domestic demand and stabilizing expectations, with a proactive fiscal policy and moderately loose monetary policy [9][10] Performance Analysis of Listed Banks - In the first half of 2025, the total assets of commercial banks reached 402.9 trillion yuan, a year-on-year increase of 8.9% [11] - The non-performing loan ratio improved to 1.49%, while the provision coverage ratio rose to 211.97%, indicating strengthened risk mitigation capabilities [11][12] - The net interest margin for commercial banks was 1.42%, a decrease of 0.12 percentage points year-on-year, marking a historical low [12][46] Business Observations of Listed Banks - Retail banking is entering a phase of "refined management dividends," with a focus on digital transformation to meet new wealth management needs [11][14] - The report highlights the ongoing transformation of bank wealth management and the challenges and opportunities in this area [11][14] - The banking sector is increasingly aligning its services with national strategic needs, focusing on technology, green finance, and inclusive finance [14][49]

Market Overview - The Dow Jones Industrial Average rose by 587.98 points, or 1.29%, closing at 46067.58 points, while the Nasdaq increased by 2.21% to 22694.61 points, and the S&P 500 gained 1.56% to 6654.72 points [1][5] - The market rebound was attributed to President Trump's softened stance on trade tensions, alleviating investor concerns [2][3] - Analysts expect S&P 500 companies to report an 8.8% year-over-year increase in earnings for the third quarter [3] Sector Performance - Broadcom's stock surged by 9.9% after announcing a partnership with OpenAI to produce its first self-developed AI chip, contributing to a nearly 5% rise in the Philadelphia Semiconductor Index [1][5] - Other tech stocks also performed well, with Tesla up 5.4%, Google up 3.0%, Amazon up 1.7%, Meta up 1.5%, and Apple up 1.0% [1] - The Nasdaq China Golden Dragon Index rose by 3.2%, with Alibaba and JD.com both increasing over 4% [1] Upcoming Financial Reports - Major U.S. banks, including JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo, are set to release their quarterly earnings on Tuesday, which will be crucial for assessing market trends amid ongoing government shutdowns [2]

LIVE Big Banks, BlackRock Post Strong Start to Earnings Season Last Updated: Updated 1 day ago Big Bank Profits Expected to Climb as Credit Concerns Ripple Across Wall Street By Rebecca Ungarino Analysts expect the four biggest U.S. banks to tell shareholders this week that their profit and revenue rose from a year earlier, even as investors voice concerns over credit quality and lending standards that two high-profile corporate bankruptcies highlighted this fall. JPMorgan Chase, Citigroup, and Wells Fargo ...

Core Viewpoint - The upcoming earnings season for major U.S. banks is expected to reveal insights into the financial sector's recovery and the broader economic landscape amid government shutdowns and tariff impacts [2][3]. Banking Sector Insights - Major banks including JPMorgan Chase, Wells Fargo, Citigroup, and Goldman Sachs are set to release their earnings reports, with expectations of strong performance driven by increased investment banking activity and capital market fees [3]. - Analysts predict double-digit year-over-year growth in bank earnings over the next few years, supported by improved trading activity and healthy credit conditions [3]. - The earnings reports will provide critical insights into the U.S. economy and consumer dynamics, especially in the context of the ongoing government shutdown [4]. Economic Data Delays - The government shutdown has delayed the release of key economic data, including the non-farm payroll report and the Consumer Price Index (CPI), adding uncertainty to market conditions [4]. - Analysts anticipate that the impact of the government shutdown will be reflected in the earnings calls, with more targeted questions from analysts regarding the macroeconomic environment [4]. Artificial Intelligence Focus - Analysts expect S&P 500 companies to see an 8.8% year-over-year earnings growth in Q3 2024, with technology sector leading the way at over 22% expected growth [5][6]. - The AI sector is gaining traction, with significant investments from companies like OpenAI, which plans to invest over $1 trillion in infrastructure, although the impact on quarterly earnings may not be fully realized until next year [7][8]. - Concerns are rising regarding the high valuations of tech stocks, with the S&P 500's expected P/E ratio at approximately 23, significantly above the 10-year average of 18.7 [8][9]. Market Sentiment - There is a cautious optimism in the market, with some strategists expressing concerns about high valuations and the potential for disappointment in earnings expectations [9]. - The current market conditions are reminiscent of the 1999 internet bubble, raising alarms about the sustainability of the ongoing bull market [9].