In this article, Wells Fargo shares rose on Wednesday following the bank’s release of better-than-expected earnings and strong guidance on net interest income for 2025.
For the fourth quarter, the bank reported that net income increased by 47% to $5.1 billion, or $1.43 per share, up from $3.45 billion, or 86 cents per share, a year earlier. Excluding severance costs of 15 cents per share, Wells Fargo earned $1.58 per share, surpassing the consensus estimate. Revenue slightly decreased to $20.38 billion compared to the previous year.
The San Francisco-based lender anticipates that net interest income for 2025 will be 1% to 3% higher than the 2024 figure of $47.7 billion.
Wells Fargo’s investment banking fees surged by 59% to $725 million in the fourth quarter compared to the previous year. The bank also repurchased 57.8 million shares, equivalent to $4 billion, of common stock in the fourth quarter of 2024.
CEO Charlie Scharf stated, “Our solid performance this quarter caps a year of significant progress for Wells Fargo.” He highlighted the bank’s improved earnings profile, growth investments, customer service enhancements, strong balance sheet, capital return to shareholders, and advancements in risk and control work.
Wells Fargo’s shares soared over 5% on Wednesday. In 2024, the bank’s shares rose by nearly 43%, and they have increased by 6% in January. A correction was issued stating that Wells Fargo earned $1.58 per share on an adjusted basis, with analysts adjusting for severance costs only, according to LSEG.
