Core Insights - Wells Fargo & Company (WFC) is positioned to benefit from the Federal Reserve's anticipated rate cuts, which could enhance investor sentiment and financial performance [1][4] - The removal of the $1.95 trillion asset cap allows WFC to expand its balance sheet, increasing deposits, loans, and fee-generating activities [5][6] - Cost-cutting initiatives are underway, with a focus on reducing non-interest expenses and optimizing branch locations, which is expected to improve profitability [7][10] Financial Performance - In the first half of 2025, WFC's net interest income (NII) fell by 4%, and net interest margin (NIM) contracted to 2.67% from 2.78% year-over-year [3] - Management projects WFC's 2025 NII to align with 2024's NII of $47.7 billion [3] - As of June 30, 2025, WFC's long-term debt was $176.2 billion, and short-term borrowings were $187.9 billion, with a liquidity coverage ratio of 121% [11] Shareholder Returns - WFC has increased its third-quarter 2025 common stock dividend by 12.5% to 45 cents per share, marking six dividend increases in the past five years [12] - The company has a share repurchase program authorized for up to $40 billion, with remaining authority to repurchase up to $40.8 billion worth of common stock as of June 30, 2025 [14] Valuation and Market Performance - Over the past year, WFC shares gained 42.2%, slightly underperforming the industry average of 43.8% [15] - WFC is trading at a forward P/E multiple of 12.1X, below the industry average of 14.4X, indicating it may be undervalued [18][22] - Earnings and sales are expected to increase year-over-year for 2025 and 2026, with sales estimates for 2025 at $83.38 billion, reflecting a 1.32% growth [24]

WASHINGTON, DC - JUNE 1: A Wells Fargo bank logo is displayed on a sign outside of a branch on June ... More 1, 2025 in Washington, DC.(Photo by Kevin Carter/Getty Images)Getty Images Wells Fargo (NYSE:WFC) is scheduled to disclose its earnings on July 15, which will be the first earnings report since the Federal Reserve removed the bank’s long-standing $1.95 trillion asset cap in late May. Although the removal of the asset cap is a substantial long-term benefit, its effect on Q2 results is expected to be m ...

Key Takeaways WFC shares rose nearly 3% after the Fed removed its asset cap imposed in 2018. The Fed cited WFC's improved governance and risk controls in lifting the growth restriction. Without the cap, WFC can now grow deposits, loans, and fee-based services to boost earnings.Shares of Wells Fargo & Company (WFC) climbed nearly 3% in after-hours trading yesterday as the bank cleared a major obstacle to its growth plans. The Federal Reserve has removed the $1.95-trillion asset cap on WFC after years of re ...

The Federal Reserve on Tuesday voted to scrap a near-$2 trillion asset cap imposed on Wells Fargo over a 2016 scandal that uncovered millions of fake accounts and other consumer abuses.The decision closes the door on a decade of regulatory woes for the nation’s fourth-largest lender and is a major victory for Wells Fargo CEO Charlie Scharf — allowing the bank to pursue growth by boosting loans, stepping up its Wall Street business and doing deals.Wells Fargo will no longer have to operate under a $1.95 tril ...