Wells Fargo Q3 2024 Earnings Report
Key Takeaways
Wells Fargo reported solid results for Q3 2024, with net income reaching $5.1 billion, or $1.42 per diluted share. The company saw growth in fee-based revenue and maintained strong credit discipline while investing in risk and control environment. Strategic investments and efficiency initiatives are beginning to impact business metrics and financial results.
Net income and diluted earnings per share increased from the second quarter.
Fee-based revenue grew 16% during the first nine months of the year, offsetting net interest income headwinds.
The company repurchased $3.5 billion of common stock in the third quarter.
New co-branded credit cards were launched, and a multi-year co-branded agreement for auto financing was announced.
Wells Fargo
Wells Fargo
Wells Fargo Revenue by Segment
Forward Guidance
This document contains forward-looking statements that are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict.
Positive Outlook
- The future operating or financial performance of the Company or any of its businesses, including our outlook for future growth
- Expectations regarding noninterest expense and our efficiency ratio
- Future credit quality and performance, including our expectations regarding future loan losses, our allowance for credit losses, and the economic scenarios considered to develop the allowance
- Expectations regarding net interest income and net interest margin
- Loan growth or the reduction or mitigation of risk in our loan portfolios
Challenges Ahead
- Current and future economic and market conditions, including the effects of declines in housing prices, high unemployment rates, declines in commercial real estate prices, U.S. fiscal debt, budget and tax matters, geopolitical matters, and any slowdown in global economic growth
- Capital and liquidity requirements (including under regulatory capital standards, such as the Basel III capital standards) and our ability to generate capital internally or raise capital on favorable terms
- Current, pending or future legislation or regulation that could have a negative effect on our revenue and businesses, including rules and regulations relating to bank products and financial services
- Ability to realize any efficiency ratio or expense target as part of our expense management initiatives, including as a result of business and economic cyclicality, seasonality, changes in our business composition and operating environment, growth in our businesses and/or acquisitions, and unexpected expenses relating to, among other things, litigation and regulatory matters
- The effect of the current interest rate environment or changes in interest rates or in the level or composition of our assets or liabilities on our net interest income and net interest margin