Wells Fargo(US:WFC) 智通财经网·2025-06-16 03:38Core Viewpoint - Analysts highlight that Wells Fargo's (WFC.US) preferred stock currently offers a yield of 6.4%, making it an attractive risk-return proposition in the current high-interest rate environment [1][3] Financial Performance - Wells Fargo's total interest income decreased by nearly $2 billion, while interest expenses fell by approximately $1.1 billion, resulting in a net interest income of $11.5 billion, a year-on-year decline of 6% [1][2] - Non-interest expenses decreased by about $450 million year-on-year, and non-interest income remained relatively stable, partially offsetting the decline in interest income [2] - Pre-tax and pre-loan loss provision profit was $6.2 billion, down from $6.6 billion in the same period last year, while net profit increased to $4.8 billion due to a reduction in tax burden [2] Preferred Stock Analysis - The Z series preferred stock offers an annual fixed dividend of $1.1875, corresponding to a nominal yield of 4.75% based on a par value of $25, but is currently trading at approximately $18.54, resulting in an actual yield of 6.4% [3] - This yield represents a premium of about 235 basis points compared to the current 5-year U.S. Treasury yield of 4.04% [3] - The preferred stock is expected to provide strong coverage and security for shareholders, as the bank only utilized less than 6% of its net profit to pay preferred dividends [2][3]