Wells Fargo & Company is a major American financial services firm founded in 1852. Based in San Francisco, it provides services like banking, investment management, credit cards, mortgage loans, and more. With operations in 35 countries and over 70 million customers globally, it’s one of the biggest banks in the US, alongside JPMorgan Chase, Bank of America, and Citigroup.
Wells Fargo is known for innovation and strong customer service, helping people and businesses achieve their financial goals. Its main branch, Wells Fargo Bank, N.A., is in Sioux Falls, South Dakota. The company values diversity, inclusion, and corporate responsibility, aiming to positively impact communities and the environment.
Wells Fargo Fiscal Q4 2024
Wells Fargo & Company (WFC) reported a net income of $5.1 billion for the fourth quarter of 2024, translating to $1.43 per diluted share. This marks a significant improvement from the previous year’s net income of $3.46 billion. Also, the company’s Return on Equity (ROE) reported 11.7%.
Financial Highlights:
- Total Revenue: $20.378 billion, a slight decrease from $20.478 billion in Q4 2023.
- Noninterest Expense: $13.900 billion, down from $15.786 billion in Q4 2023.
- Provision for Credit Losses: $1.095 billion, compared to $1.282 billion in Q4 2023.
- Average Loans: $906.4 billion, down from $938.0 billion in Q4 2023.
- Average Deposits: $1,353.8 billion, up from $1,340.9 billion in Q4 2023.
Key Points:
- Net Interest Income: Decreased by 7% due to changes in deposit mix, lower rates on floating rate assets, and lower loan balances.
- Noninterest Income: Increased by 11%, driven by strong venture capital investments, higher asset-based fees in Wealth and Investment Management, and increased investment banking fees.
- Noninterest Expense: Decreased by 12%, primarily due to lower FDIC assessments, reduced severance expenses, and efficiency initiatives.
- Provision for Credit Losses: Decreased, reflecting lower allowances across most loan portfolios.
- Income Tax Expense: Included $863 million of tax benefits from resolving prior period matters.
2025 Outlook
Net Interest Income: Expected to be 1% to 3% higher in 2025 compared to 2024.
Noninterest Expense: Forecasted to be $54.2 billion in 2025, which includes $600 million more for expenses in Wealth and Investment Management.
Board Statements
Wells Fargo CEO Charlie Scharf expressed sympathy for those affected by the Los Angeles wildfires. He committed to supporting the impacted communities.
Wells Fargo’s strong performance included improved earnings, growth investments, a strong balance sheet, and capital returns. Diluted earnings per share increased 11%, with strong fee-based revenue growth.
Scharf highlighted progress on risk and control measures, including the end of a 2016 consent order. He is optimistic about future opportunities, citing growth in credit cards, net checking accounts, and mobile customers.
Investment banking and trading saw double-digit revenue growth in 2024. Scharf is confident in Wells Fargo’s ongoing transformation and thanked employees for their hard work.
Impact on the Market
Wells Fargo’s stock surged by 6% after the company reported strong earnings for Q4 2024. Investors were particularly pleased with the significant jump in net profit and the improved return on equity (ROE), which indicated a positive outlook for the company’s financial health and future performance.
