SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo & Company (NYSE: WFC) has released its third quarter 2025 financial results. The financial results are available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/ and on a Form 8-K filed by the company with the Securities and Exchange Commission (SEC) on Oct. 14, 2025, and available on the SEC's website at https://www.sec.gov. Conference call The company will host a live conference call on Tuesday, Oct. 14, at 10:00. ...

Wells Fargo's profit rose in the third quarter on higher income from interest payments. ...

[Consolidated Results](index=3&type=section&id=Consolidated%20Results) [Summary Financial Data](index=3&type=section&id=Summary%20Financial%20Data) Wells Fargo & Company reported strong financial performance for Q3 2025, with total revenue increasing by 3% QoQ and 5% YoY, and net income applicable to common stock growing by 2% QoQ and 10% YoY. Diluted EPS rose by 4% QoQ and 17% YoY. The company also saw increases in average loans and assets, while maintaining stable capital ratios **Selected Income Statement Data (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total revenue | $21,436M | $20,822M | $20,366M | 3% | 5% | | Noninterest expense | $13,846M | $13,379M | $13,067M | 3% | 6% | | Pre-tax pre-provision profit (PTPP) | $7,590M | $7,443M | $7,299M | 2% | 4% | | Provision for credit losses | $681M | $1,005M | $1,065M | (32)% | (36)% | | Wells Fargo net income | $5,589M | $5,494M | $5,114M | 2% | 9% | | Wells Fargo net income applicable to common stock | $5,341M | $5,214M | $4,852M | 2% | 10% | | Diluted earnings per common share | $1.66 | $1.60 | $1.42 | 4% | 17% | | Dividends declared per common share | $0.45 | $0.40 | $0.40 | 13% | 13% | | Book value per common share | $52.30 | $51.13 | $49.26 | 2% | 6% | | Tangible book value per common share | $44.18 | $43.18 | $41.76 | 2% | 6% | **Selected Balance Sheet Data (Period-End Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Loans | $943,102M | $924,418M | $909,711M | 2% | 4% | | Assets | $2,062,926M | $1,981,269M | $1,922,125M | 4% | 7% | | Deposits | $1,367,361M | $1,340,703M | $1,349,646M | 2% | 1% | | Headcount | 210,821 | 212,804 | 220,167 | (1)% | (4)% | | Common Equity Tier 1 (CET1) - Standardized | 11.0% | 11.1% | 11.3% | - | - | | Tier 1 leverage ratio | 7.7% | 8.0% | 8.3% | - | - | | Supplementary Leverage Ratio (SLR) | 6.4% | 6.7% | 6.9% | - | - | - Provision for credit losses decreased significantly by **32% QoQ** and **36% YoY**, indicating improved credit quality or a more favorable economic outlook[4](index=4&type=chunk) [Consolidated Statement of Income](index=5&type=section&id=Consolidated%20Statement%20of%20Income) The consolidated statement of income shows a 3% QoQ increase in total revenue, driven by a 5% increase in interest income and a 4% increase in total noninterest income. Net interest income also grew by 2% QoQ. Noninterest expense increased by 3% QoQ, primarily due to personnel expenses **Consolidated Statement of Income (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Interest income | $22,419M | $21,320M | $22,998M | 5% | (3)% | | Interest expense | $10,469M | $9,612M | $11,308M | 9% | (7)% | | Net interest income | $11,950M | $11,708M | $11,690M | 2% | 2% | | Total noninterest income | $9,486M | $9,114M | $8,676M | 4% | 9% | | Total revenue | $21,436M | $20,822M | $20,366M | 3% | 5% | | Provision for credit losses | $681M | $1,005M | $1,065M | (32)% | (36)% | | Total noninterest expense | $13,846M | $13,379M | $13,067M | 3% | 6% | | Income before income tax expense | $6,909M | $6,438M | $6,234M | 7% | 11% | | Wells Fargo net income | $5,589M | $5,494M | $5,114M | 2% | 9% | - Investment banking fees showed significant growth, increasing by **21% QoQ** and **25% YoY**, contributing to the overall noninterest income growth[12](index=12&type=chunk) - Card fees increased by **4% QoQ** and **12% YoY**, partly due to the acquisition of the remaining interest in the merchant services joint venture in April 2025, which now includes its revenue in card fees[12](index=12&type=chunk) [Consolidated Balance Sheet](index=6&type=section&id=Consolidated%20Balance%20Sheet) The consolidated balance sheet at September 30, 2025, shows a 4% QoQ increase in total assets, primarily driven by increases in federal funds sold and securities purchased under resale agreements, and debt securities. Total liabilities also increased by 5% QoQ, mainly due to a 23% rise in short-term borrowings. Total equity remained stable QoQ **Consolidated Balance Sheet (Period-End Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total assets | $2,062,926M | $1,981,269M | $1,922,125M | 4% | 7% | | Loans | $943,102M | $924,418M | $909,711M | 2% | 4% | | Debt securities (Trading, AFS, HTM) | $578,143M | $533,916M | $529,832M | 8% | 9% | | Total deposits | $1,367,361M | $1,340,703M | $1,349,646M | 2% | 1% | | Short-term borrowings | $230,649M | $187,995M | $111,894M | 23% | 106% | | Total liabilities | $1,879,914M | $1,798,315M | $1,737,114M | 5% | 8% | | Total equity | $183,012M | $182,954M | $185,011M | 0% | (1)% | | Treasury stock | $(123,148)M | $(117,244)M | $(107,479)M | (5)% | (15)% | - Federal funds sold and securities purchased under resale agreements increased by **47% QoQ** and **47% YoY**, indicating increased liquidity management activities[15](index=15&type=chunk) [Average Balances and Interest Rates (Taxable-Equivalent Basis)](index=7&type=section&id=Average%20Balances%20and%20Interest%20Rates%20%28Taxable-Equivalent%20Basis%29) Average interest-earning assets increased by 4% QoQ, primarily driven by federal funds sold and securities purchased under resale agreements. Total interest-bearing liabilities also increased by 6% QoQ, mainly due to a 43% rise in short-term borrowings. The net interest margin on a taxable-equivalent basis slightly decreased to 2.61% from 2.68% QoQ **Average Balances (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total interest-earning assets | $1,832,510M | $1,762,160M | $1,754,068M | 4% | 4% | | Loans | $928,677M | $916,719M | $910,255M | 1% | 2% | | Total interest-bearing liabilities | $1,414,181M | $1,334,659M | $1,314,429M | 6% | 8% | | Interest-bearing deposits | $984,197M | $970,684M | $986,206M | 1% | 0% | | Short-term borrowings | $211,959M | $147,917M | $109,902M | 43% | 93% | **Average Interest Rates (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Total interest-earning assets | 4.88% | 4.87% | 5.24% | | Loans | 5.97% | 5.95% | 6.41% | | Total interest-bearing liabilities | 2.94% | 2.89% | 3.43% | | Interest-bearing deposits | 2.09% | 2.09% | 2.60% | | Net interest margin on a taxable-equivalent basis | 2.61% | 2.68% | 2.67% | - The average interest rate on total interest-earning assets remained stable QoQ at **4.88%**, while the rate on total interest-bearing liabilities increased to **2.94%** from **2.89% QoQ**[17](index=17&type=chunk) [Reportable Operating Segment Results](index=8&type=section&id=Reportable%20Operating%20Segment%20Results) [Combined Segment Results](index=8&type=section&id=Combined%20Segment%20Results) In Q3 2025, all reportable operating segments except Corporate reported positive net income. Consumer Banking and Lending, Commercial Banking, and Corporate and Investment Banking were the largest contributors to net income. Total revenue increased across most segments QoQ, with Corporate and Investment Banking showing the highest growth **Combined Segment Net Income (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Segment | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Consumer Banking and Lending | $2,185M | $1,863M | $1,924M | | Commercial Banking | $1,162M | $1,086M | $1,318M | | Corporate and Investment Banking | $1,966M | $1,737M | $1,992M | | Wealth and Investment Management | $591M | $480M | $529M | | Corporate | $(315)M | $328M | $(649)M | | Consolidated Company | $5,589M | $5,494M | $5,114M | **Combined Segment Total Revenue (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Segment | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Consumer Banking and Lending | $9,650M | $9,228M | $9,124M | | Commercial Banking | $3,041M | $2,933M | $3,333M | | Corporate and Investment Banking | $4,879M | $4,673M | $4,911M | | Wealth and Investment Management | $4,196M | $3,898M | $3,878M | | Corporate | $176M | $559M | $(337)M | | Consolidated Company | $21,436M | $20,822M | $20,366M | - The Corporate segment reported a net loss of **$315 million** in Q3 2025, a significant decrease from a net income of **$328 million** in Q2 2025, but an improvement from a loss of **$649 million** in Q3 2024[18](index=18&type=chunk) [Consumer Banking and Lending Segment](index=10&type=section&id=Consumer%20Banking%20and%20Lending) The Consumer Banking and Lending segment reported a 14% QoQ increase in net income to $2,185 million, driven by higher total revenue and a decrease in provision for credit losses. Total revenue grew by 5% QoQ, with significant increases in card fees and mortgage banking. Average total loans increased by 3% YoY, while average total deposits remained stable **Consumer Banking and Lending Income Statement (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $7,505M | $7,199M | $7,149M | 4% | 5% | | Total noninterest income | $2,145M | $2,029M | $1,975M | 6% | 9% | | Total revenue | $9,650M | $9,228M | $9,124M | 5% | 6% | | Provision for credit losses | $767M | $945M | $930M | (19)% | (18)% | | Net income | $2,185M | $1,863M | $1,924M | 17% | 14% | **Consumer Banking and Lending Selected Metrics (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Return on allocated capital | 18.5% | 15.9% | 16.3% | | Efficiency ratio | 62% | 63% | 62% | | Digital active customers ( in millions) | 37.0 | 36.6 | 35.8 | | Mobile active customers ( in millions) | 32.5 | 32.1 | 31.2 | | Credit card purchase volume ($ in billions) | $47.4 | $46.4 | $43.4 | | Auto loan originations ($ in billions) | $8.8 | $6.9 | $4.1 | - In Q3 2025, approximately **$8 billion** of loans and **$6 billion** of deposits were prospectively transferred from Commercial Banking to Consumer, Small and Business Banking within this segment[27](index=27&type=chunk) [Commercial Banking Segment](index=12&type=section&id=Commercial%20Banking) The Commercial Banking segment's net income increased by 7% QoQ to $1,162 million, despite a 2% QoQ decrease in net interest income and a 9% YoY decrease in total revenue. The segment saw a significant 191% QoQ increase in provision for credit losses, though it remained lower YoY. Average total loans decreased by 3% QoQ, partly due to a transfer of certain business customers **Commercial Banking Income Statement (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $1,949M | $1,983M | $2,289M | (2)% | (15)% | | Total noninterest income | $1,092M | $950M | $1,044M | 15% | 5% | | Total revenue | $3,041M | $2,933M | $3,333M | 4% | (9)% | | Provision for credit losses | $39M | $(43)M | $85M | 191% | (54)% | | Net income | $1,162M | $1,086M | $1,318M | 7% | (12)% | **Commercial Banking Selected Balance Sheet Data (Average, Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial and industrial loans | $166,946M | $167,134M | $161,967M | 0% | 3% | | Commercial real estate loans | $37,605M | $44,373M | $44,756M | (15)% | (16)% | | Total loans | $219,356M | $226,461M | $222,116M | (3)% | (1)% | | Total deposits | $171,976M | $177,994M | $173,158M | (3)% | (1)% | - The decrease in Commercial Real Estate loans by **15% QoQ** and **16% YoY** significantly impacted the total loan portfolio for the segment[34](index=34&type=chunk) [Corporate and Investment Banking Segment](index=14&type=section&id=Corporate%20and%20Investment%20Banking) The Corporate and Investment Banking segment reported a 13% QoQ increase in net income to $1,966 million, driven by a 4% QoQ increase in total revenue. Investment banking fees saw a substantial 18% QoQ and 24% YoY growth. Average total loans increased by 4% QoQ and 8% YoY, with significant growth in Markets loans **Corporate and Investment Banking Income Statement (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $1,870M | $1,815M | $1,909M | 3% | (2)% | | Total noninterest income | $3,009M | $2,858M | $3,002M | 5% | 0% | | Total revenue | $4,879M | $4,673M | $4,911M | 4% | (1)% | | Provision for credit losses | $(107)M | $103M | $26M | NM | NM | | Net income | $1,966M | $1,737M | $1,992M | 13% | (1)% | **Corporate and Investment Banking Selected Balance Sheet Data (Average, Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial and industrial loans | $214,774M | $202,473M | $183,255M | 6% | 17% | | Commercial real estate loans | $81,121M | $83,413M | $91,963M | (3)% | (12)% | | Total loans | $295,895M | $285,886M | $275,218M | 4% | 8% | | Total trading-related assets | $306,440M | $274,599M | $234,210M | 12% | 31% | | Total deposits | $204,056M | $202,420M | $194,315M | 1% | 5% | - Net gains from trading activities increased by **16% QoQ** and **4% YoY**, contributing to the segment's noninterest income[36](index=36&type=chunk) [Wealth and Investment Management Segment](index=16&type=section&id=Wealth%20and%20Investment%20Management) The Wealth and Investment Management segment's net income increased by 23% QoQ and 12% YoY to $591 million, driven by an 8% QoQ and 8% YoY increase in total revenue. Investment advisory and other asset-based fees grew by 7% QoQ and 8% YoY. Total client assets increased by 5% QoQ and 8% YoY, reaching $2,473 billion **Wealth and Investment Management Income Statement (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $974M | $891M | $842M | 9% | 16% | | Total noninterest income | $3,222M | $3,007M | $3,036M | 7% | 6% | | Total revenue | $4,196M | $3,898M | $3,878M | 8% | 8% | | Provision for credit losses | $(14)M | $12M | $16M | NM | NM | | Net income | $591M | $480M | $529M | 23% | 12% | **Wealth and Investment Management Selected Metrics (Period-End Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Return on allocated capital | 35.1% | 28.7% | 31.5% | | Efficiency ratio | 82% | 83% | 81% | | Total client assets ($ in billions) | $2,473 | $2,346 | $2,294 | | Total loans (average) | $86,150M | $84,871M | $82,797M | | Total deposits (average) | $127,377M | $123,611M | $107,991M | - Advisory assets increased by **6% QoQ** and **11% YoY**, reaching **$1,104 billion**, contributing to the growth in investment advisory fees[40](index=40&type=chunk) [Corporate Segment](index=17&type=section&id=Corporate) The Corporate segment reported a net loss of $315 million in Q3 2025, a significant decline from a net income of $328 million in Q2 2025, primarily due to a 69% QoQ decrease in total revenue and a 41% YoY increase in income tax benefit. Noninterest expense increased by 15% QoQ. Average total deposits decreased significantly by 40% YoY **Corporate Segment Income Statement (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $(273)M | $(103)M | $(415)M | NM | 34% | | Total noninterest income | $449M | $662M | $78M | (32)% | 476% | | Total revenue | $176M | $559M | $(337)M | (69)% | 152% | | Provision for credit losses | $(4)M | $(12)M | $8M | 67% | NM | | Noninterest expense | $650M | $565M | $580M | 15% | 12% | | Net income (loss) | $(315)M | $328M | $(649)M | NM | 51% | **Corporate Segment Selected Balance Sheet Data (Average, Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Available-for-sale debt securities | $188,103M | $172,879M | $147,093M | 9% | 28% | | Held-to-maturity debt securities | $214,409M | $220,364M | $242,621M | (3)% | (12)% | | Total assets | $636,359M | $601,010M | $648,930M | 6% | (2)% | | Total deposits | $55,201M | $46,242M | $92,662M | 19% | (40)% | - The Corporate segment includes corporate treasury and enterprise functions, investment portfolio, and venture capital/private equity investments, as well as results for previously divested businesses[41](index=41&type=chunk) [Credit-Related Information](index=18&type=section&id=Credit-Related%20Information) [Consolidated Loans Outstanding – Period-End Balances, Average Balances, and Average Interest Rates](index=18&type=section&id=Consolidated%20Loans%20Outstanding%20%E2%80%93%20Period-End%20Balances%2C%20Average%20Balances%2C%20and%20Average%20Interest%20Rates) Consolidated period-end loans increased by 2% QoQ and 4% YoY to $943,102 million, driven by growth in commercial and industrial loans and consumer loans (credit card, auto, other consumer). Commercial real estate loans continued to decline. Average interest rates on total loans remained stable QoQ at 5.97% **Period-End Loans (Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Loan Type | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | $ Change QoQ | $ Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial and industrial | $417,904M | $402,150M | $372,750M | $15,754M | $45,154M | | Commercial real estate | $130,250M | $132,560M | $141,410M | $(2,310)M | $(11,160)M | | Total commercial | $563,465M | $549,770M | $530,642M | $13,695M | $32,823M | | Residential mortgage | $243,910M | $245,755M | $252,676M | $(1,845)M | $(8,766)M | | Credit card | $56,996M | $55,318M | $55,046M | $1,678M | $1,950M | | Auto | $46,041M | $42,878M | $42,815M | $3,163M | $3,226M | | Other consumer | $32,690M | $30,697M | $28,532M | $1,993M | $4,158M | | Total consumer | $379,637M | $374,648M | $379,069M | $4,989M | $568M | | Total loans | $943,102M | $924,418M | $909,711M | $18,684M | $33,391M | **Average Interest Rates on Loans (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Loan Type | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Commercial and industrial | 6.26% | 6.29% | 7.16% | | Commercial real estate | 6.15% | 6.17% | 6.90% | | Credit card | 12.70% | 12.65% | 12.73% | | Auto | 5.59% | 5.48% | 5.22% | | Total loans | 5.97% | 5.95% | 6.41% | [Net Loan Charge-offs](index=19&type=section&id=Net%20Loan%20Charge-offs) Total net loan charge-offs decreased by 5% QoQ and 15% YoY to $942 million in Q3 2025. This reduction was primarily driven by lower charge-offs in credit card and other consumer loans. Commercial real estate charge-offs increased QoQ but decreased significantly YoY **Net Loan Charge-offs by Product (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Product | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | $ Change QoQ | $ Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial and industrial | $131M | $179M | $129M | $(48)M | $2M | | Commercial real estate | $107M | $61M | $184M | $46M | $(77)M | | Total commercial | $250M | $247M | $323M | $3M | $(73)M | | Credit card | $571M | $622M | $601M | $(51)M | $(30)M | | Auto | $50M | $30M | $83M | $20M | $(33)M | | Other consumer | $93M | $101M | $127M | $(8)M | $(34)M | | Total consumer | $692M | $750M | $788M | $(58)M | $(96)M | | Total net loan charge-offs | $942M | $997M | $1,111M | $(55)M | $(169)M | **Net Loan Charge-offs by Segment (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Segment | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Consumer Banking and Lending | $766M | $818M | $871M | | Commercial Banking | $83M | $98M | $50M | | Corporate and Investing Banking | $94M | $75M | $196M | | Wealth and Investment Management | $(1)M | $6M | $(5)M | | Total net loan charge-offs | $942M | $997M | $1,111M | [Changes in Allowance for Credit Losses for Loans](index=20&type=section&id=Changes%20in%20Allowance%20for%20Credit%20Losses%20for%20Loans) The allowance for credit losses for loans decreased by 2% QoQ and 3% YoY to $14,311 million at period-end September 30, 2025. This was primarily due to a decrease in the provision for credit losses and lower net loan charge-offs. The allowance for loan losses as a percentage of total loans was 1.46% **Changes in Allowance for Credit Losses for Loans (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | $ Change QoQ | $ Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Balance, beginning of period | $14,568M | $14,552M | $14,789M | $16M | $(221)M | | Provision for credit losses for loans | $687M | $1,007M | $1,059M | $(320)M | $(372)M | | Net loan charge-offs | $(942)M | $(997)M | $(1,111)M | $55M | $169M | | Balance, end of period | $14,311M | $14,568M | $14,739M | $(257)M | $(428)M | | Allowance for loan losses to total net loan charge-offs (annualized) | 3.68x | 3.49x | 3.24x | - | - | | Allowance for loan losses as a percentage of total loans | 1.46% | 1.51% | 1.58% | - | - | - The ratio of allowance for loan losses to total net loan charge-offs improved to **3.68x**, indicating a stronger coverage of potential losses[46](index=46&type=chunk) [Allocation of the Allowance for Credit Losses for Loans](index=21&type=section&id=Allocation%20of%20the%20Allowance%20for%20Credit%20Losses%20for%20Loans) The allocation of allowance for credit losses (ACL) for loans shows that commercial loans account for 52.8% of the total ACL, while consumer loans account for 47.2%. Commercial real estate loans have the highest ACL as a percentage of loan class at 2.28%, followed by credit card loans at 8.61% **Allocation of Allowance for Credit Losses for Loans by Product (Sep 30, 2025):** | Product | ACL ($ in millions) | ACL as % of loan class | | :-------------------------------- | :------------------ | :--------------------- | | Commercial and industrial | $4,376 | 1.05% | | Commercial real estate | $2,965 | 2.28% | | Lease financing | $211 | 1.38% | | Total commercial | $7,552 | 1.34% | | Residential mortgage | $569 | 0.23% | | Credit card | $4,907 | 8.61% | | Auto | $717 | 1.56% | | Other consumer | $566 | 1.73% | | Total consumer | $6,759 | 1.78% | | Total allowance for credit losses for loans | $14,311 | 1.52% | **Allocation of Allowance for Credit Losses for Loans by Segment (Sep 30, 2025):** | Segment | ACL ($ in millions) | ACL as % of loan class | | :-------------------------------- | :------------------ | :--------------------- | | Consumer Banking and Lending | $7,599 | 2.32% | | Commercial Banking | $2,184 | 0.98% | | Corporate and Investing Banking | $4,275 | 1.41% | | Wealth and Investment Management | $251 | 0.29% | | Corporate | $2 | 0.22% | | Total allowance for credit losses for loans | $14,311 | 1.52% | [Nonperforming Assets (Nonaccrual Loans and Foreclosed Assets)](index=22&type=section&id=Nonperforming%20Assets%20%28Nonaccrual%20Loans%20and%20Foreclosed%20Assets%29) Total nonperforming assets decreased by 2% QoQ and 7% YoY to $7,832 million at September 30, 2025. This reduction was primarily driven by a decrease in commercial real estate nonaccrual loans. Nonaccrual loans as a percentage of total loans stood at 0.81% **Nonaccrual Loans by Product (Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Product | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | $ Change QoQ | $ Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial and industrial | $1,050M | $925M | $743M | $125M | $307M | | Commercial real estate | $3,334M | $3,556M | $4,115M | $(222)M | $(781)M | | Total commercial | $4,459M | $4,563M | $4,952M | $(104)M | $(493)M | | Residential mortgage | $3,057M | $3,090M | $3,086M | $(33)M | $(29)M | | Total consumer | $3,155M | $3,194M | $3,220M | $(39)M | $(65)M | | Total nonaccrual loans | $7,614M | $7,757M | $8,172M | $(143)M | $(558)M | | Foreclosed assets | $218M | $207M | $212M | $11M | $6M | | Total nonperforming assets | $7,832M | $7,964M | $8,384M | $(132)M | $(552)M | - Nonaccrual loans in the Corporate and Investment Banking segment decreased by **$636 million YoY**, contributing significantly to the overall reduction in nonperforming assets[49](index=49&type=chunk) [Commercial Loan Portfolio – Commercial and Industrial Loans and Lease Financing by Industry and Commercial Real Estate Loans by Property Type](index=23&type=section&id=Commercial%20Loan%20Portfolio%20%E2%80%93%20Commercial%20and%20Industrial%20Loans%20and%20Lease%20Financing%20by%20Industry%20and%20Commercial%20Real%20Estate%20Loans%20by%20Property%20Type) The commercial loan portfolio shows that 'Financials except banks' is the largest industry for commercial and industrial loans and lease financing, with $183,637 million outstanding. For commercial real estate loans, 'Apartments' represent the largest property type with $37,677 million outstanding. Nonaccrual loans for 'Office' property type remain the highest at $2,450 million **Commercial and Industrial Loans and Lease Financing by Industry (Sep 30, 2025):** | Industry | Nonaccrual loans | Loans outstanding balance | Total commitments | | :-------------------------------- | :--------------- | :------------------------ | :---------------- | | Financials except banks | $165M | $183,637M | $293,425M | | Technology, telecom and media | $117M | $25,353M | $65,988M | | Real estate and construction | $70M | $29,329M | $60,547M | | Retail | $85M | $20,454M | $43,224M | | Materials and commodities | $104M | $14,217M | $34,747M | | Total commercial and industrial loans and lease financing | $1,125M | $433,215M | $850,945M | **Commercial Real Estate Loans by Property Type (Sep 30, 2025):** | Property Type | Nonaccrual loans | Loans outstanding balance | Total commitments | | :-------------------------------- | :--------------- | :------------------------ | :---------------- | | Apartments | $287M | $37,677M | $41,732M | | Industrial/warehouse | $46M | $23,854M | $30,020M | | Office | $2,450M | $23,670M | $24,613M | | Hotel/motel | $289M | $11,882M | $12,262M | | Retail (excluding shopping center) | $96M | $10,714M | $11,687M | | Total commercial real estate loans | $3,334M | $130,250M | $145,354M | - Nonaccrual loans for the 'Office' property type within Commercial Real Estate decreased by **$800 million YoY**, but still represent the largest portion of nonaccrual CRE loans[51](index=51&type=chunk) [Equity](index=24&type=section&id=Equity) [Tangible Common Equity](index=24&type=section&id=Tangible%20Common%20Equity) Tangible common equity (TCE), a non-GAAP measure, remained stable QoQ at $139,119 million at September 30, 2025. Tangible book value per common share increased by 2% QoQ to $44.18. Return on average tangible common equity (ROTCE) was 15.2% for Q3 2025, consistent with the prior quarter and up from 13.9% YoY **Tangible Book Value per Common Share Reconciliation (Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | % Change QoQ | % Change YoY | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total equity | $183,012M | $182,954M | $185,011M | 0% | (1)% | | Total common stockholders' equity | $164,687M | $164,644M | $164,801M | 0% | 0% | | Tangible common equity | $139,119M | $139,057M | $139,711M | 0% | 0% | | Common shares outstanding (in millions) | 3,148.9 | 3,220.4 | 3,345.5 | (2)% | (6)% | | Book value per common share | $52.30 | $51.13 | $49.26 | 2% | 6% | | Tangible book value per common share | $44.18 | $43.18 | $41.76 | 2% | 6% | **Return on Average Tangible Common Equity (ROTCE) Reconciliation (Quarter ended Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Net income applicable to common stock | $5,341M | $5,214M | $4,852M | | Average tangible common equity | $139,539M | $137,697M | $139,346M | | Return on average common stockholders' equity (ROE) | 12.8% | 12.8% | 11.7% | | Return on average tangible common equity (ROTCE) | 15.2% | 15.2% | 13.9% | [Risk-Based Capital Ratios Under Basel III](index=26&type=section&id=Risk-Based%20Capital%20Ratios%20Under%20Basel%20III) Wells Fargo maintained strong capital adequacy under Basel III in Q3 2025. The Common Equity Tier 1 (CET1) ratio under the Standardized Approach was 11.0%, slightly down from 11.1% QoQ, and 12.7% under the Advanced Approach, stable QoQ. Total risk-weighted assets (RWAs) increased by 1% QoQ under the Standardized Approach **Risk-Based Capital Ratios Under Basel III (Sep 30, 2025 vs. Jun 30, 2025 vs. Sep 30, 2024):** | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Common Equity Tier 1 (CET1) - Standardized Approach | 11.0% | 11.1% | 11.3% | | Tier 1 capital - Standardized Approach | 12.3% | 12.5% | 12.8% | | Total capital - Standardized Approach | 14.8% | 15.0% | 15.5% | | Risk-weighted assets (RWAs) - Standardized Approach ($ in billions) | $1,243.8 | $1,225.9 | $1,219.9 | | Common Equity Tier 1 (CET1) - Advanced Approach | 12.7% | 12.7% | 12.7% | | Tier 1 capital - Advanced Approach | 14.2% | 14.3% | 14.4% | | Total capital - Advanced Approach | 16.2% | 16.2% | 16.4% | | Risk-weighted assets (RWAs) - Advanced Approach ($ in billions) | $1,072.8 | $1,070.4 | $1,089.3 | - The company must calculate its CET1, Tier 1, and total capital ratios under both the Standardized and Advanced Approaches, as per Basel III capital rules[57](index=57&type=chunk)

Core Viewpoint - Wells Fargo is positioned for potential earnings growth in the upcoming third-quarter report, with analysts generally optimistic about its future performance despite some conservative price targets [2][4][5]. Company Overview - Wells Fargo & Company is a significant entity in the financial services sector, providing a diverse range of banking, investment, mortgage, and finance products through four main segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management [1]. Stock Performance and Analyst Outlook - The stock consensus target price for Wells Fargo has risen from $80.69 to $95.33 over the past year, indicating a positive trend and favorable analyst sentiment [2][6]. - Analyst David Long from Raymond James has set a more cautious price target of $60, reflecting a conservative outlook despite expectations of stronger earnings [2][4]. Upcoming Earnings Season - The U.S. bank earnings season is critical for investors, with Wells Fargo scheduled to release its third-quarter earnings on October 14, 2025. This report will be the first full quarterly update since the Federal Reserve lifted the bank's $1.95 trillion asset cap in May 2025 [3][6]. - There is an expectation that Wells Fargo will report stronger earnings, driven by a resurgence in investment banking activities, which could lead to an earnings beat [4][5][6].

Core Viewpoint - Analysts have become more optimistic about Murphy Oil's shares, leading to a significant increase in stock price, although recommendations remain neutral [1][2]. Group 1: Analyst Recommendations - Roger Read from Wells Fargo raised the price target for Murphy Oil to $28 per share from $26, while maintaining a hold recommendation [2]. - Bank of Nova Scotia also raised its price target for Murphy Oil to $30 per share from $26, while keeping a hold recommendation [4]. Group 2: Market Reaction - Following the recent price target increases, Murphy Oil's stock rose nearly 8%, outperforming the S&P 500's 1.6% increase [1]. Group 3: Company Performance Expectations - Murphy Oil is expected to deliver strong operational and financial results for the third quarter, with results scheduled to be announced on October 30 [3]. - There are concerns regarding the company's guidance for 2026, indicating some caution among analysts [3].

Core Insights - The Q3 earnings season is set to begin with nearly 80 companies reporting, including 35 S&P 500 members, with major banks leading the reports [1][9][12] - A positive trend in earnings estimate revisions has been observed since the start of Q3, contrasting with the previous two quarters [2][5] - For Q3 2025, earnings are expected to grow by +5.7% year-over-year, with revenues increasing by +6.1% [3][10] Earnings Estimates and Sector Performance - Q3 estimates have increased for 6 out of 16 Zacks sectors, notably in Tech, Finance, and Energy, while 10 sectors faced downward pressure, particularly Basic Materials and Consumer Staples [4][5] - The Finance sector is projected to see a +12.7% increase in earnings year-over-year, with revenues up by +6% [10] Key Company Reports - JPMorgan is expected to report earnings of $4.83 per share on revenues of $44.86 billion, reflecting year-over-year increases of +10.5% and +5.2% respectively [6][7] - Bank of America anticipates earnings of $0.94 per share on $27.1 billion in revenues, with year-over-year changes of +16.1% and +7% [8][12] Early Earnings Results - So far, 23 S&P 500 members have reported Q3 results, showing a +9.1% increase in earnings and +6.4% in revenues, with 78.3% beating EPS estimates [14][18]

Market Overview - The S&P 500 and Nasdaq retreated from record highs, while the Dow experienced the largest percentage decline [1][8] - The current bull market is nearing its third anniversary, with the S&P 500 having risen nearly 90% since its low on October 12, 2022 [1][8] - Concerns about a potential market bubble are emerging, particularly driven by the rise of artificial intelligence technology [1] Economic Data and Earnings Season - The U.S. government shutdown has lasted nine days, resulting in a lack of essential economic data for market participants [2][8] - The third-quarter earnings season is approaching, with analysts predicting an 8.8% year-on-year growth for the S&P 500, down from 13.8% in the previous quarter [6][8] - Major banks including JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo are set to report quarterly results next week [8] Sector Performance - Among the 11 major sectors of the S&P 500, materials saw the largest decline, while consumer staples were the only sector to gain [5][8] - Housing and homebuilding sectors underperformed, both dropping over 2% due to margin and demand concerns [5][8] Stock Movements - Delta Air Lines reported stronger-than-expected earnings, leading to a 4.3% increase in its shares, while the S&P 1500 Airlines index rose by 1.9% [8] - Costco Wholesale shares increased by 3.1% following positive September sales data [8] - Albemarle's shares rose by 5.3% after a price target increase from TD Cowen and due to China's tightening of export controls on rare earths [9] Market Sentiment - Financial markets are pricing in a 94.6% likelihood of a 25 basis-point interest rate cut by the Fed at the end of October [4][8] - The Dow Jones Industrial Average fell by 243.36 points (0.52%), the S&P 500 lost 18.61 points (0.28%), and the Nasdaq Composite decreased by 18.75 points (0.08%) [4][8]

In the meantime, let's get back to the broader markets and the S&P and the NASDAQ taking a breather from these record highs. Joining at us with his outlook today, Wells Fargo Investment Institute senior global market strategist Scott Ren. Scott, it's good to see you.Um, I am curious though, shortterm, three rejections of 6750 uh since Friday. What's it going to take to push past some of these levels. Well, you know, Carl, at some point we are going to get a few rejections of these higher levels and and I I ...

Core Viewpoint - Analysts forecast Wells Fargo (WFC) to report quarterly earnings of $1.54 per share, reflecting a year-over-year increase of 1.3%, with revenues expected to reach $21.17 billion, a 4% increase compared to the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 2.2%, indicating a collective reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3]. Key Financial Metrics - The 'Efficiency Ratio' is expected to be 63.4%, down from 64.0% a year ago [5]. - 'Average Balance - Total interest-earning assets' is projected at $1781.03 billion, up from $1754.07 billion in the same quarter last year [5]. - 'Return on equity (ROE)' is anticipated to be 12.2%, compared to 11.7% in the same quarter of the previous year [6]. - 'Book value per common share' is expected to be $51.70, up from $49.26 a year ago [6]. Asset Quality and Capital Ratios - 'Total nonperforming assets' are estimated at $8.16 billion, down from $8.38 billion in the same quarter last year [7]. - 'Net loan charge-offs' are projected to reach $1.12 billion, slightly up from $1.11 billion a year ago [7]. - 'Tier 1 Leverage Ratio' is expected to be 7.9%, down from 8.3% a year ago [8]. - 'Total nonaccrual loans' are estimated at $8.01 billion, down from $8.17 billion in the same quarter last year [8]. - 'Common Equity Tier 1 (CET1)' is projected to be 11.1%, compared to 11.3% a year ago [8]. - 'Tier 1 Capital Ratio' is expected to be 12.2%, down from 12.8% in the same quarter last year [9]. Income Projections - 'Total Noninterest Income' is forecasted to reach $9.10 billion, up from $8.68 billion a year ago [9]. - 'Net interest income (on a taxable-equivalent basis)' is expected to be $12.08 billion, compared to $11.77 billion in the previous year [10]. Stock Performance - Over the past month, Wells Fargo shares have recorded a return of -0.7%, while the Zacks S&P 500 composite has increased by 4% [10].

Core Insights - Wells Fargo & Company is set to release its third-quarter earnings results on October 14, with analysts expecting earnings of $1.54 per share, an increase from $1.42 per share in the same period last year [1] - The company projects quarterly revenue of $21.11 billion, up from $20.37 billion a year earlier [1] - Wells Fargo filed for a mixed shelf offering of up to $110 million on August 26 [1] Stock Performance - Wells Fargo shares experienced a decline of 1.7%, closing at $79.73 [2] Analyst Ratings - UBS analyst Erika Najarian maintained a Buy rating but reduced the price target from $95 to $93 [4] - Evercore ISI Group analyst John Pancari maintained an Outperform rating and raised the price target from $94 to $98 [4] - Truist Securities analyst John McDonald maintained a Buy rating and increased the price target from $86 to $88 [4] - Citigroup analyst Keith Horowitz maintained a Neutral rating and raised the price target from $85 to $90 [4] - Goldman Sachs analyst Richard Ramsden maintained a Buy rating but cut the price target from $92 to $91 [4]