01—Abstract
Summary
Summary of the 10-K filed February 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Wells Fargo's 2025 Form 10-K shows a year of stronger earnings and a continued retreat from legacy constraints.
Net income rose 8% to $21.3 billiona and diluted EPS increased 17% to $6.26, driven by a $1.6 billion increase in noninterest income (wealth management fees, investment banking, and a merchant services joint venture acquisition) and a $676 million decline in the provision for credit losses. Net interest income was roughly flat at $47.5 billion, as lower rates and a shift in deposit mix offset balance growth. Total revenue rose 2% to $83.7 billion, while noninterest expense was flat at $54.8 billion, keeping the efficiency ratio at 66%.
Return on average tangible common equity improved to 14.6% from 13.4%. Credit quality improved modestly. The allowance for loan credit losses fell to $14.3 billionb (1.45% of loans) from $14.6 billion, driven by commercial real estate office improvement.
Nonperforming assets rose to $8.5 billionc, mainly on commercial and industrial nonaccrual loans. Loans grew 8% to $986 billion and deposits rose 4% to $1.43 trillion. Regulatory constraints are a key investor consideration: the Federal Reserve lifted the asset growth cap in June 2025, but the 2018 governance consent order and the 2024 OCC anti-money laundering formal agreement remain in effect.
Capital and liquidity remain strong, with a 10.61% CET1 ratio versus an 8.50% requirement and a 119% liquidity coverage ratio. Capital return remained a priority. The company repurchased $17.7 billiond of stock in 2025 and paid $6.5 billion in common and preferred dividends, and it declared $1.70 per share in common dividends.
Roughly $29.8 billion remained under the $40 billion repurchase authorization at year end. Book value per share rose to $53.24 from $48.85.
02—Key points
Key Highlights
- Net income of $21.3 billion (up 8%) and diluted EPS of $6.26 (up 17% from $5.37); ROTCE improved to 14.6% from 13.4%.
- Total revenue rose 2% to $83.7 billion, led by noninterest income up 5% to $36.2 billion, with wealth management fees and investment banking fees as key drivers; net interest income was roughly flat at $47.5 billion.
- Provision for credit losses fell 16% to $3.7 billion, and the ACL for loans declined to $14.3 billion (1.45% of loans), reflecting improved commercial real estate office credit.
- Nonperforming assets rose to $8.5 billion (0.86% of loans), driven by higher commercial and industrial nonaccrual loans.
- Strong capital and liquidity: CET1 of 10.61% versus an 8.50% requirement, TLAC of 23.22% versus 21.50%, and LCR of 119%.
- Repurchased $17.7 billion of common stock in 2025 with $29.8 billion of authorization remaining; common dividends declared rose to $1.70 per share.
- Regulatory overhang persists: the 2018 Federal Reserve consent order remains partly in place (asset cap removed June 2025), and the September 2024 OCC anti-money laundering formal agreement is ongoing.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 24, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Net Income | $21.34B$19.72B | +8.2% |
| EPS (Basic) | $6.34$5.43 | +16.8% |
| EPS (Diluted) | $6.26$5.37 | +16.6% |
| Shares Outstanding (Basic) | 3.20B3.43B | −6.5% |
| Shares Outstanding (Diluted) | 3.24B3.47B | −6.5% |
05—Questions
Frequently Asked Questions
Why did Wells Fargo's EPS grow faster than its net income?
Diluted EPS rose 17% to $6.26, versus 8% growth in net income to $21.3 billion. The difference reflects a lower share count: average diluted shares fell to about 3.24 billion from 3.47 billion, as the company repurchased 221 million shares in 2025 and preferred stock dividends and redemptions were also a factor.
Is the Federal Reserve asset cap still in place?
No. The Federal Reserve removed the limitation on total asset growth imposed by the 2018 consent order on June 3, 2025. The remaining provisions of that consent order, covering governance and compliance and operational risk management, are still in effect, and the separate OCC anti-money laundering formal agreement from September 2024 also remains in force.
What drove the decline in credit provisions and what should investors watch?
The provision for credit losses fell to $3.7 billion from $4.3 billion, mainly due to lower net charge-offs in commercial real estate (particularly office) and in auto and other consumer loans. Investors should watch rising nonperforming assets, which increased to $8.5 billion on higher commercial and industrial nonaccrual loans, and the ACL coverage ratio, which fell to 1.45% from 1.60%.
How is net interest income trending and why is it not growing?
Net interest income was essentially flat at $47.5 billion versus $47.7 billion in 2024. Lower interest rates reduced yields on floating-rate assets and shifted deposit mix, partly offset by higher debt securities and loan balances, lower deposit costs, and improved Markets results. Net interest margin declined to 2.64% from 2.73%, partly due to growth in the lower-margin Markets business.
What is the outlook for capital returns and the structural risks in the filing?
Capital return remains a central priority: the company paid $6.5 billion in dividends and repurchased $17.7 billion of stock in 2025, and a $40 billion authorization with about $29.8 billion remaining is in place. Structural considerations include the Support Agreement with the intermediate holding company, which could restrict dividends to the parent if capital or liquidity triggers are breached, and the company's status as a global systemically important bank with a 1.50% surcharge expected to continue in 2026.
06—Continue