Wells Fargo(US:WFC) Zhi Tong Cai Jing·2026-01-14 12:57Core Viewpoint - Wells Fargo (WFC.US) reported its Q4 financial performance, showing a revenue of $21.29 billion, a 4% year-over-year increase, but slightly below Wall Street's expectation of $21.6 billion. The non-GAAP earnings per share for Q4 were $1.76, exceeding the market expectation of $1.69. The bank's net income for 2025 is projected to reach $21.3 billion, slightly below the analyst forecast of $21.6 billion [1][3]. Financial Performance Summary - Q4 total revenue was $21.29 billion, a decrease of $144 million from Q3 and an increase of $914 million from Q4 2024 [2]. - Net interest income (NII) for Q4 was $12.33 billion, a 4% year-over-year increase but below the analyst forecast of $12.4 billion. The total NII for 2025 reached $47.48 billion, close to the previous year's level [5]. - Noninterest income for Q4 was $8.96 billion, a 5% year-over-year increase [5]. - Noninterest expense for Q4 was $13.73 billion, slightly above the analyst forecast of $13.6 billion, influenced by $612 million in severance costs [3]. Business Segment Performance - The consumer banking and wealth & investment management segments showed the strongest revenue growth in Q4 2025. Consumer banking revenue was $9.57 billion, a 7% year-over-year increase, while wealth & investment management revenue reached $4.36 billion, a 10% year-over-year increase [8]. - Average loans in the consumer banking segment were $329.3 billion, up from $325.3 billion in Q3, while average deposits slightly decreased to $778.6 billion [8]. - The commercial banking segment reported revenue of $3.08 billion, a 1% quarter-over-quarter increase but a 3% year-over-year decrease [8]. Credit Losses and Provisions - Q4 credit loss provisions increased to $1.04 billion, reflecting a 53% quarter-over-quarter growth, primarily due to increases in commercial and industrial loans, auto loans, and credit card balances [8]. - The net charge-offs for Q4 were $1.03 billion, an increase from $954 million in Q3 [2]. Future Outlook - The bank anticipates a net interest income of approximately $50 billion for 2026, slightly below market expectations of $50.2 billion. Expected expenses for 2026 are around $55.7 billion, in line with analyst forecasts [9]. - CEO Charlie Scharf indicated that the bank has laid a solid foundation for growth and returns despite facing various constraints [8][9].