Wells Fargo(US:WFC) Benzinga·2025-10-14 14:22Core Insights - Wells Fargo reported a net interest income of $11.95 billion for Q3 2025, reflecting a 2% year-over-year increase driven by fixed-rate asset repricing and higher loan balances [1] - Noninterest income rose by 9% to $9.49 billion, supported by higher asset-based fees and increased market valuations [2] - The bank's total revenue increased by 5% year-over-year to $21.44 billion, surpassing analyst expectations [3] Financial Performance - Earnings per share were reported at $1.66, exceeding the consensus estimate of $1.54, with adjusted EPS at $1.73 after excluding severance expenses [2] - Provision for credit losses decreased by 36% to $681 million, indicating improved credit performance [4] - The return on equity ratio for Q3 was 13.9%, with an efficiency ratio of 62% and a CET ratio of 11.6% [4] Business Segments - Corporate and Investment Banking revenues decreased by 1% to $4.88 billion, with banking revenues up by 1% due to higher investment banking revenue [5] - Average loans increased by 2% year-over-year, driven by growth in commercial and industrial loans, credit card loans, and auto loans [5] Economic Outlook - The company anticipates net interest income for fiscal year 2025 to align with the previous year's income of $47.7 billion, with Q4 2025 expected net interest income between $12.4 billion and $12.5 billion [7] - Noninterest expenses for fiscal 2025 are projected to be approximately $54.6 billion, an increase from prior guidance [8] - The bank has raised its return on tangible common equity target to between 17% and 18% as it seeks revenue growth opportunities [8] Market Reaction - Following the earnings report, Wells Fargo's stock rose by 3.88% to $81.94 [8]