Wells Fargo(WFC) 海通国际·2025-01-16 00:23Investment Rating - The report does not explicitly state the investment rating for Wells Fargo & Co (WFC US) [1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43][44][45][46][47][48][49][50][51][52][53][54][55][56][57][58][59][60][61][62][63][64][65][66][67][68][69][70] Core Views - Wells Fargo's 24Q4 revenue missed expectations, but net profit exceeded expectations [2] - Net interest income (NII) and net interest margin (NIM) outperformed expectations, while noninterest income underperformed [1][2] - The bank's provision for credit losses and non-performing loan (NPL) ratio were better than expected [3][4] - CET1 ratio, ROA, ROE, and ROTCE showed mixed results compared to consensus estimates [3][4][5] Financial Performance - Revenue growth was -0.5% YoY, below the Bloomberg consensus forecast of +0.5% [4][8] - Net interest income declined by 7.3% YoY, better than the expected decline of 8.4% [4][5] - Noninterest income grew by 10.8% YoY, below the expected growth of 14.5% [4][5] - Net profit attributable to common shareholders increased by 51.9% YoY, surpassing the expected growth of 45.1% [4][5] - NIM increased by 3bp to 2.70%, above the consensus estimate of 2.67% [4][5] - Total loans decreased by 2.6% YoY, better than the expected decline of 2.8% [4][5] - Total deposits grew by 1.0% YoY, outperforming the expected decline of 0.5% [4][5] - Credit loss provisions were 1.224 billion [4][5] - NPL ratio decreased by 5bp to 0.87%, below the expected 0.92% [4][5] - CET1 ratio decreased by 0.3pct to 11.1%, slightly below the expected 11.2% [4][5] - ROTCE increased by 4.9pct to 13.9%, above the expected 13.0% [4][5] - ROA increased by 0.33pct to 1.05%, above the expected 0.98% [4][5] - ROE increased by 4.1pct to 11.7%, above the expected 11.0% [4][5] Business Segment Performance - Consumer Banking and Lending revenue declined by 5.7% YoY, below the expected decline of 2.0% [4][5] - Corporate and Investment Banking revenue declined by 2.6% YoY, below the expected decline of 1.2% [4][5] - Wealth and Investment Management revenue grew by 8.1% YoY, above the expected growth of 7.7% [4][5] - Commercial Banking revenue declined by 5.8% YoY, below the expected decline of 4.7% [4][5] Key Metrics - Cost-to-income ratio decreased by 9.0pct to 68.0%, slightly above the expected 65.9% [4][5] - DPS increased by 0.4, in line with expectations [5]