Wells Fargo Raises Estimates of 2025 Noninterest Expenses

Summary of Key Points Core Viewpoint - Wells Fargo has raised its expectations for 2025 noninterest expenses to approximately $54.6 billion, an increase from the previous guidance of about $54.2 billion [1] Group 1: Expense Changes - The increase in noninterest expenses is attributed to higher severance expenses of around $200 million and increased revenue-related compensation expenses of approximately $200 million [2] - The revenue-related compensation expenses are primarily driven by the strong performance of the company's wealth and investment management unit, benefiting from favorable stock market conditions [2] Group 2: Net Interest Income Guidance - Wells Fargo has maintained its guidance for 2025 net interest income (NII) to be roughly in line with the 2024 NII of $47.7 billion [3] - NII is a critical performance metric for banks, reflecting the difference between interest paid on deposits and interest earned on interest-bearing assets [3]