How did Wells Fargo perform in Q4 2025 compared with the prior year?

Net income was $5.4 billion ($1.62 per diluted share) versus $5.1 billion ($1.43) in Q4 2024. Revenue rose 4% to $21.3 billion, expenses fell 1% to $13.7 billion, and provision for credit losses rose to $1.04 billion from $1.10 billion. The quarter included a $612 million severance charge; excluding it, EPS was $1.76.

Why did the CET1 ratio decline, and does it limit capital returns?

The CET1 ratio fell to 10.6% from 11.0% in Q3 and 11.1% a year earlier. Drivers were $5.0 billion of Q4 buybacks and growth in standardized risk-weighted assets to $1.29 trillion. The ratio remains well above the 8.5% regulatory minimum and buffers, and management says it continues to operate with significant excess capital. The figure is preliminary.

What is driving credit quality trends?

Net loan charge-offs rose to $1.05 billion (0.43% of average loans) from $942 million in Q3, driven by commercial real estate office and commercial and industrial losses, plus higher credit card and auto charge-offs in consumer. Nonperforming assets rose to $8.5 billion (0.86% of loans). The allowance for loans ratio fell to 1.45% from 1.52% last quarter, largely reflecting CRE office reserve reductions as the mix shifts.

What are management's 2026 expectations?

Management expects net interest income excluding Markets to rise from $46.7 billion in 2025, assuming two to three Fed rate cuts and mid-single-digit growth in average loans and deposits. 2026 expenses are expected to decline on lower severance, partly offset by higher revenue-related pay in WIM and higher FDIC assessments. Management also set a new medium-term ROTCE target of 17-18%.

What do the removal of the asset cap and termination of consent orders mean for investors?

Management said the Federal Reserve asset cap removal and termination of multiple consent orders let the company compete on a level playing field and dedicate more resources to growth, including expanding its balance sheet. Investors should weigh this against the risk that growth raises capital needs, given the CET1 decline, and that results and expectations remain preliminary pending the 2025 Form 10-K.

WFC 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed January 14, 2026. Cited figures are marked; the original filing is the authoritative source.

Wells Fargo reported fourth quarter 2025 net income of $5.4 billion^a, or $1.62 per diluted share, up 6% and 13% year over year respectively.

Excluding a $612 million^b pre-tax severance charge ($0.14 per share), net income was $5.8 billion, or $1.76 per share. Revenue was $21.3 billion, up 4% year over year, with net interest income up 4% and noninterest income up 5%. Noninterest expense fell 1% to $13.7 billion, and pre-tax pre-provision profit rose 17% to $7.6 billion.

Credit quality was mixed: net charge-offs rose 8% sequentially to $1.03 billion^c, driven by commercial real estate office and commercial and industrial losses, and nonperforming assets rose to 0.86% of total loans. Full-year 2025 diluted EPS was $6.26, up 17%, with ROTCE of 14.6%. Capital and balance sheet trends were central to management's message.

The CET1 ratio declined to 10.6% from 11.0% in the prior quarter, reflecting $5.0 billion^d of Q4 buybacks (58.2 million shares) and balance sheet growth in risk-weighted assets, which rose to $1.29 trillion. Average loans grew 5% year over year to $955.8 billion, led by commercial and industrial, auto, and credit card lending, while average deposits rose 2% to $1.38 trillion. Management also announced a new medium-term ROTCE target of 17-18%, following removal of the Federal Reserve asset cap and termination of multiple consent orders.

For 2026, management guided to growth in net interest income excluding Markets, supported by mid-single-digit loan and deposit growth, and to lower expenses, citing lower severance and efficiency initiatives partly offset by higher FDIC assessments and revenue-related compensation. These are preliminary results, and the final figures in the 2025 Form 10-K may differ.

02—Key points

Key Highlights

Q4 2025 GAAP net income of $5.4 billion ($1.62 diluted EPS), up 6% and 13% year over year; excluding the $612 million severance charge, net income was $5.8 billion ($1.76 EPS).
Revenue rose 4% year over year to $21.3 billion, with net interest income up 4% and noninterest income up 5%; expenses fell 1% to $13.7 billion, lifting pre-tax pre-provision profit 17%.
Full-year 2025 diluted EPS of $6.26 (up 17%), ROTCE of 14.6%, and $23 billion returned to shareholders, including $18 billion in buybacks.
CET1 ratio fell to 10.6% from 11.0% last quarter as buybacks and RWA growth outpaced earnings; the company still reports significant excess capital.
Credit costs rose sequentially: net charge-offs were $1.05 billion (0.43% of loans), with CRE office and C&I losses rising, and nonperforming assets increased to 0.86% of total loans.
Average loans grew 5% year over year to $955.8 billion, led by commercial and industrial, auto, and credit card; the company set a new medium-term ROTCE target of 17-18%.
2026 outlook calls for NII ex-Markets growth on mid-single-digit loan and deposit growth, and lower 2026 expenses driven by lower severance, partly offset by higher FDIC assessments and revenue-related compensation.

03—Questions

Frequently Asked Questions

How did Wells Fargo perform in Q4 2025 compared with the prior year?
Net income was $5.4 billion ($1.62 per diluted share) versus $5.1 billion ($1.43) in Q4 2024. Revenue rose 4% to $21.3 billion, expenses fell 1% to $13.7 billion, and provision for credit losses rose to $1.04 billion from $1.10 billion. The quarter included a $612 million severance charge; excluding it, EPS was $1.76.
Why did the CET1 ratio decline, and does it limit capital returns?
The CET1 ratio fell to 10.6% from 11.0% in Q3 and 11.1% a year earlier. Drivers were $5.0 billion of Q4 buybacks and growth in standardized risk-weighted assets to $1.29 trillion. The ratio remains well above the 8.5% regulatory minimum and buffers, and management says it continues to operate with significant excess capital. The figure is preliminary.
What is driving credit quality trends?
Net loan charge-offs rose to $1.05 billion (0.43% of average loans) from $942 million in Q3, driven by commercial real estate office and commercial and industrial losses, plus higher credit card and auto charge-offs in consumer. Nonperforming assets rose to $8.5 billion (0.86% of loans). The allowance for loans ratio fell to 1.45% from 1.52% last quarter, largely reflecting CRE office reserve reductions as the mix shifts.
What are management's 2026 expectations?
Management expects net interest income excluding Markets to rise from $46.7 billion in 2025, assuming two to three Fed rate cuts and mid-single-digit growth in average loans and deposits. 2026 expenses are expected to decline on lower severance, partly offset by higher revenue-related pay in WIM and higher FDIC assessments. Management also set a new medium-term ROTCE target of 17-18%.
What do the removal of the asset cap and termination of consent orders mean for investors?
Management said the Federal Reserve asset cap removal and termination of multiple consent orders let the company compete on a level playing field and dedicate more resources to growth, including expanding its balance sheet. Investors should weigh this against the risk that growth raises capital needs, given the CET1 decline, and that results and expectations remain preliminary pending the 2025 Form 10-K.

04—Continue

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