Wells Fargo earnings beat estimates despite revenue miss

Investing.com -- Wells Fargo & Co. (NYSE: WFC) reported first-quarter earnings that exceeded analyst expectations, though revenue fell short of estimates, sending shares down 1.7% premarket.

The bank posted adjusted earnings per share of $1.60, beating the analyst consensus of $1.58 by $0.02. However, revenue of $21.45 billion missed expectations of $21.76 billion, representing a 6% increase from $20.15 billion in the same quarter last year. Net interest income rose 5% YoY to $12.10 billion, while noninterest income climbed 8% to $9.35 billion.

"We saw continued positive impacts from the investments we have been making with diluted earnings per share increasing 15%, revenue increasing 6%, loans increasing 11%, and deposits increasing 7% compared to a year ago," said Chairman and CEO Charlie Scharf. "We returned $4 billion to shareholders through common stock repurchases while continuing to operate with significant excess capital."

Average loans grew 10% YoY to $996.0 billion, while average deposits increased 6% to $1.42 trillion. The bank's return on equity improved to 12.2% from 11.5% in the prior-year quarter.

Credit quality remained stable with net loan charge-offs at 0.45% of average total loans, unchanged from the first quarter of 2025. The provision for credit losses totaled $1.14 billion, up 22% YoY, reflecting higher commercial and industrial and auto loan balances.

The bank's Common Equity Tier 1 ratio stood at 10.3%, down from 11.1% a year earlier.

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