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Mar 31

Wells Fargo Q1 2025 Earnings Report

Wells Fargo reported solid earnings performance with EPS growth and improved fee-based revenue in Q1 2025.

Key Takeaways

Wells Fargo delivered a strong Q1 2025, with $4.9B in net income and $1.39 in EPS. Fee-based revenue grew across core segments, costs declined year-over-year, and the bank returned $3.5B to shareholders through buybacks. Adjusted EPS was $1.27 after excluding tax benefits and gains from asset sales.

EPS rose to $1.39, boosted by discrete tax benefits and gains from a business sale.

Net income reached $4.9B, reflecting strong performance across most business segments.

Expenses decreased year-over-year due to lower FDIC assessments and efficiency efforts.

The company repurchased $3.5B in common stock, reflecting strong capital return.

Total Revenue
$20.1B
Previous year: $20.9B
-3.4%
EPS
$1.27
Previous year: $1.2
+5.8%
Net Interest Margin
2.67%
Previous year: 2.81%
-5.0%
Efficiency Ratio
69%
Previous year: 69%
+0.0%
CET1 Ratio
11.1%
Previous year: 11.2%
-0.9%

Wells Fargo

Wells Fargo

Wells Fargo Revenue by Segment

Forward Guidance

Management remains confident in navigating a potentially slower 2025 economic environment, with continued investment in growth and efficiency.

Positive Outlook

  • Strong capital base and capital return via buybacks
  • Progress in closing regulatory consent orders
  • Increased fee-based income in core businesses
  • Stable credit quality and lower net charge-offs
  • Improved ROTCE and operating leverage

Challenges Ahead

  • Lower interest rates impacting net interest income
  • Pressure on loan balances across several segments
  • Volatility in markets may affect trading and venture capital income
  • Uncertainty around trade policy and macro environment
  • Investment portfolio repositioning led to securities losses