Wells Fargo(US:WFC)2025-10-14 14:00Firm Performance & Strategy - Wells Fargo is a U S focused bank benefiting from the strength of the U S economy, with over 95% of its revenue U S -based in 2024[5, 7] - The company has simplified its businesses through sales and exits, while making key investments in areas like bankers, marketing, credit card offerings, and technology[9, 10] - Wells Fargo is targeting a 17-18% Return on Tangible Common Equity (ROTCE) over the medium-term, aiming to manage its Common Equity Tier 1 (CET1) ratio down to 10-10 5%[27, 29] Q3 2025 Financial Highlights - Net income for Q3 2025 was $5 6 billion, or $1 66 per diluted common share, which included a $(296) million severance expense[35] - Revenue for Q3 2025 reached $21 4 billion, a 5% increase, with net interest income up 2% to $12 0 billion and noninterest income up 9% to $9 5 billion[35] - Average loans in Q3 2025 totaled $928 7 billion, up 2%, while average deposits were slightly down at $1 3 trillion[35] - The Common Equity Tier 1 (CET1) ratio stood at 11 0% with Common Equity Tier 1 capital of $136 6 billion, and the Liquidity Coverage Ratio (LCR) was 121%[36, 37] Segment Performance - Consumer Banking and Lending (CBL) reported total revenue of $9 65 billion, up 6% year-over-year, with average loans at $325 3 billion and average deposits at $781 3 billion[68] - Commercial Banking (CB) reported total revenue of $3 041 billion, down 9% year-over-year, with average loans at $219 4 billion and average deposits at $172 0 billion[70] - Corporate and Investment Banking (CIB) reported total revenue of $4 879 billion, down 1% year-over-year, with total loans of $295 9 billion and deposits of $204 1 billion[71] - Wealth and Investment Management (WIM) reported total revenue of $4 196 billion, up 8% year-over-year, with average loans at $86 2 billion and average deposits at $127 4 billion, and total client assets of $2 473 trillion[73] Outlook - The company expects 2025 net interest income (NII) to be roughly in line with 2024 NII of $47 7 billion[78] - The company expects 2025 noninterest expense to be approximately $54 6 billion, which includes higher severance and revenue-related compensation expenses[78]