New York, Jan 15, 2026, 10:40 EST — Regular session
- WFC slipped roughly 0.3% in early trading, following a 4.6% plunge on Wednesday
- Q4 profit and net interest income fell short of estimates, dragged down by a $612 million severance charge
- Investors are zeroing in on the 2026 interest-income forecast and the policy risks tied to credit card rates
Wells Fargo & Co shares slipped roughly 0.3% to $89.00 in morning trading Thursday, following a sharp drop after the bank’s quarterly results came out the day before.
The move may be modest, but the tension running through the story is anything but. Wells Fargo is aiming to prove it can convert a cleaner regulatory record into more consistent growth and improved returns. Investors are parsing every detail that impacts its earnings potential.
Net interest income — the difference between what a bank earns on loans and what it pays on deposits — remains the main driver. If that figure falls short, investors often tune out everything else.
Wells Fargo fell short of analysts’ profit forecasts for the fourth quarter after taking a $612 million hit from severance expenses. The stock plunged 4.6%, closing at $89.25 on Wednesday—its steepest one-day drop in six months. Net interest income rose 4% to $12.33 billion but still lagged behind the $12.46 billion expected. The bank projected roughly $50 billion in interest income for 2026, slightly below the average estimate of $50.33 billion, according to LSEG data. Brian Mulberry of Zacks Investment Management noted that “costs are under control and loan quality remains high,” while CFO Mike Santomassimo called for “continued careful consideration” regarding a proposed 10% cap on credit card rates. 1
Wells Fargo reported repurchasing 58.2 million shares, totaling $5.0 billion, in the fourth quarter, highlighting steady progress on its long-running cleanup efforts. CEO Charlie Scharf outlined a new medium-term goal: a 17-18% return on tangible common equity, a key profitability metric that excludes goodwill. The bank also said it returned $23 billion to shareholders in 2025, through buybacks and an increased dividend. 2
In a separate filing, the company revealed plans for a fresh tranche of senior redeemable fixed-to-floating rate notes as part of its medium-term notes program. The pricing supplement, dated Jan. 15, was labeled “subject to completion.” 3
Wells Fargo’s slide on Wednesday added to a broader bank sell-off following last year’s gains. The S&P 500 bank index dropped, with Citigroup and Bank of America also pulling back. Investors are digesting mixed earnings and concerns around the proposed credit-card rate cap. “After a nice run, and so-so or mediocre earnings, you’re seeing profit-taking and consolidation” in banks, said Michael O’Rourke, chief market strategist at JonesTrading. 4
The bank flagged steady credit metrics but acknowledged some recurring weak areas. Net loan charge-offs came in at 0.43% of average loans (annualized). It also noted rising losses in commercial real estate, mainly tied to the office segment, plus increased charge-offs on credit cards and autos compared to Q3. 5
The downside case is straightforward. Without loan growth, or if deposit costs remain high, hitting the interest-income target becomes tougher. Should the credit-card cap become official policy, the math on unsecured lending shifts quickly. Commercial real estate, particularly office space, continues to weigh on the sector.
Traders are zeroing in on any new clues about the direction of rates and how that might impact banks’ interest-income forecasts. The next major event: the Federal Reserve’s policy meeting set for Jan. 27-28. 6
