Wells Fargo(US:WFC) ZACKS·2026-01-09 15:15Core Viewpoint - Wells Fargo (WFC) is expected to report quarterly earnings of $1.66 per share, reflecting a 16.9% increase year-over-year, with revenues projected at $21.6 billion, a 6% increase from the previous year [1]. Earnings Projections - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong link between earnings estimate trends and short-term stock price movements [2]. Key Metrics Estimates - Analysts expect the Efficiency Ratio to be 62.9%, down from 66.0% a year ago [3]. - The Average Balance of Total interest-earning assets is projected to reach $1,872.93 billion, compared to $1,756.36 billion last year [4]. - Return on equity (ROE) is anticipated to be 12.5%, up from 11.7% year-over-year [4]. - Book value per common share is estimated at $52.68, compared to $48.85 in the same quarter last year [5]. - Total nonperforming assets are forecasted to be $8.10 billion, up from $7.94 billion a year ago [5]. - Net loan charge-offs are expected to be $1.08 billion, down from $1.21 billion last year [5]. Financial Ratios - The Tier 1 Leverage Ratio is expected to be 7.5%, down from 8.1% a year ago [6]. - Total nonaccrual loans are projected at $7.96 billion, compared to $7.73 billion last year [6]. - Common Equity Tier 1 (CET1) is estimated at 10.7%, down from 12.4% year-over-year [7]. - The Tier 1 Capital Ratio is expected to be 11.9%, compared to 12.6% last year [7]. Income Estimates - Total Noninterest Income is projected to reach $9.17 billion, up from $8.54 billion a year ago [8]. - Net interest income (on a taxable-equivalent basis) is expected to be $12.48 billion, compared to $11.91 billion in the same quarter last year [8]. Stock Performance - Wells Fargo shares have increased by 3.3% over the past month, outperforming the Zacks S&P 500 composite, which rose by 1.2% [8].