How did Wells Fargo's first quarter 2026 earnings compare with a year ago?

Net income rose 7% to $5.25 billion, and diluted EPS increased 15% to $1.60 from $1.39. Revenue grew 6% to $21.4 billion, while noninterest expense rose 3% and the provision for credit losses rose 22% to $1.1 billion. Results include a $135 million discrete tax benefit tied to prior-period matters.

What is driving the revenue growth?

Net interest income increased 5%, helped by higher deposit balances, lower deposit costs, and higher loan and securities balances. Noninterest income rose 8%, driven by Markets (up 19%), higher asset-based fees in Wealth and Investment Management from market valuations, and venture capital gains, partly offset by the sale of the rail car leasing business and lower mortgage banking fees.

Is Wells Fargo's credit quality deteriorating?

Not materially on a year-over-year basis. Net charge-offs were 0.45% of average loans, unchanged from a year ago, though they rose from 0.43% last quarter, mainly in commercial and industrial and credit card loans. Nonperforming assets rose $265 million sequentially to 0.86% of loans, and the allowance for credit losses fell to 1.41% of total loans from 1.59% a year ago, which investors may want to monitor.

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

The CET1 ratio fell to 10.3% from 11.1% a year ago, mainly due to growth in risk-weighted assets (about 17 basis points) and a decline in accumulated other comprehensive income (about 7 basis points) from higher rates and wider mortgage-backed securities spreads. Management says the company continues to operate with significant excess capital above its requirements, which is still well above the 8.5% regulatory minimum and buffers, so the company continued repurchasing shares at about $4.0 billion in the quarter.

What should investors note about the outlook and the preliminary nature of these results?

The company reiterated its 2026 guidance: net interest income of about $50 billion (plus or minus) and noninterest expense of about $55.7 billion. The results, including CET1, TLAC, and SLR, are preliminary and may change in the Form 10-Q. Management also noted that the effects of higher oil prices may take time to materialize in the economy.

WFC 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

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

Wells Fargo reported first quarter 2026 net income of $5.3 billion^a, or $1.60 per diluted share, compared with $4.9 billion, or $1.39 per share, a year earlier.

Diluted EPS rose 15% year over year, supported by revenue growth of 6% to $21.4 billion^b, with net interest income up 5% and noninterest income up 8%. Management highlighted growth across all four operating segments, with Markets revenue up 19%, Wealth and Investment Management revenue up 14%, and Consumer Banking and Lending revenue up 7%. Note that the quarter included a $135 million (about $0.04 per share) one-time discrete tax benefit, and the company cautioned that the results are preliminary.

Expenses rose 3% to $14.3 billion^c, and the efficiency ratio improved to 67% from 69%, though this is still higher than the prior quarter's 64%. Credit quality was broadly stable: net charge-offs were 0.45% of average loans, flat year over year, and nonperforming assets rose $265 million sequentially to $8.8 billion. The provision for credit losses increased 22% to $1.1 billion.

Average loans grew 10% and average deposits grew 6%, while the company repurchased $4.0 billion^d of stock. However, capital ratios declined: the CET1 ratio fell to 10.3% from 11.1% a year ago, though the company says it continues to hold significant excess capital.

For investors, the key takeaways are broad-based revenue momentum, strong buybacks, and a 2026 outlook that is unchanged (net interest income of about $50 billion, noninterest expense of about $55.7 billion). Investors should watch the lower CET1 ratio, the sequential rise in nonperforming loans, and the fact that the management commentary flagged that higher oil prices may take time to affect the economy.

02—Key points

Key Highlights

Diluted EPS of $1.60, up 15% year over year, though down $0.02 from the prior quarter; includes a $0.04 per-share discrete tax benefit
Revenue of $21.4 billion, up 6% year over year, with net interest income up 5% and noninterest income up 8%
Markets revenue up 19% and Banking revenue up 11% within Corporate and Investment Banking; Wealth and Investment Management revenue up 14%
Average loans up 10% to $996.0 billion and average deposits up 6% to $1.415 trillion
Returned $4.0 billion via 46.3 million shares repurchased; period-end shares outstanding down 6% from a year earlier
CET1 ratio of 10.3% (Standardized), down from 11.1% a year ago and 10.6% last quarter; TLAC ratio of 23.0%
Net charge-offs stable at 0.45% of average loans; nonperforming assets up $265 million sequentially to $8.8 billion; 2026 NII (~$50B) and expense (~$55.7B) guidance unchanged

03—Questions

Frequently Asked Questions

How did Wells Fargo's first quarter 2026 earnings compare with a year ago?
Net income rose 7% to $5.25 billion, and diluted EPS increased 15% to $1.60 from $1.39. Revenue grew 6% to $21.4 billion, while noninterest expense rose 3% and the provision for credit losses rose 22% to $1.1 billion. Results include a $135 million discrete tax benefit tied to prior-period matters.
What is driving the revenue growth?
Net interest income increased 5%, helped by higher deposit balances, lower deposit costs, and higher loan and securities balances. Noninterest income rose 8%, driven by Markets (up 19%), higher asset-based fees in Wealth and Investment Management from market valuations, and venture capital gains, partly offset by the sale of the rail car leasing business and lower mortgage banking fees.
Is Wells Fargo's credit quality deteriorating?
Not materially on a year-over-year basis. Net charge-offs were 0.45% of average loans, unchanged from a year ago, though they rose from 0.43% last quarter, mainly in commercial and industrial and credit card loans. Nonperforming assets rose $265 million sequentially to 0.86% of loans, and the allowance for credit losses fell to 1.41% of total loans from 1.59% a year ago, which investors may want to monitor.
Why did the CET1 ratio decline, and does it limit capital returns?
The CET1 ratio fell to 10.3% from 11.1% a year ago, mainly due to growth in risk-weighted assets (about 17 basis points) and a decline in accumulated other comprehensive income (about 7 basis points) from higher rates and wider mortgage-backed securities spreads. Management says the company continues to operate with significant excess capital above its requirements, which is still well above the 8.5% regulatory minimum and buffers, so the company continued repurchasing shares at about $4.0 billion in the quarter.
What should investors note about the outlook and the preliminary nature of these results?
The company reiterated its 2026 guidance: net interest income of about $50 billion (plus or minus) and noninterest expense of about $55.7 billion. The results, including CET1, TLAC, and SLR, are preliminary and may change in the Form 10-Q. Management also noted that the effects of higher oil prices may take time to materialize in the economy.

04—Continue

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