NEW YORK, July 16, 2026, 18:06 (EDT) – Shares of Wells Fargo NYSE:WFC saw a recovery as the bank reported that market-linked lines accounted for 76% of its revenue growth.
Roughly 76% of Wells Fargo’s $1.80 billion rise in yearly revenue originated from three lines sensitive to market changes, based on the bank’s preliminary second-quarter results.
The composition is significant since the Federal Reserve lifted a $1.95 trillion asset cap last year. Investors are monitoring if expanding the balance sheet will generate sustainable spread income.
Average loans climbed 12%, while net interest income excluding Markets edged up only 2%. Net interest margin decreased to 2.43% from 2.68%.
U.S. markets were closed at the dateline. Shares of Wells Fargo finished Thursday at $88.07, rising 0.6%. The closing price was 0.5% higher compared to Monday’s level before results.
The stock fell 2.7% on Tuesday before bouncing back over the following two sessions.
Wells Fargo reported a 17% increase in preliminary net income, reaching $6.41 billion. Earnings per share climbed 25% to $2.00, topping the LSEG consensus estimate of $1.72. A tax benefit contributed an additional four cents.
The initial data outlines the following breakdown of revenue growth:
| Q2 year-on-year revenue driver | Increase | Share of total growth |
|---|---|---|
| Markets net interest income | $397 million | 22% |
| Venture-driven equity gains | $728 million | 40% |
| Investment-banking fees | $243 million | 14% |
| Other revenue sources combined | $432 million | 24% |
| Total revenue growth | $1.80 billion | 100% |
The three market-linked lines contributed $1.37 billion. Other revenue changes made up $432 million. All calculations are based on unrounded preliminary company data.
Buybacks contributed to a greater divergence between overall profit and per-share growth. The number of common shares outstanding at the end of the period dropped by 6% from a year earlier. The bank bought back $3.0 billion worth of its own stock.
“Those other businesses tend to operate with slimmer margins,” Chief Executive Charlie Scharf said to analysts. Reuters
Wells maintained its net interest income projection for 2026 at close to $50 billion. By contrast, JPMorgan Chase NYSE:JPM increased its guidance following its report. As a result, Wells did not match the upgraded outlook provided by its bigger rival.
Credit costs declined. Net charge-offs dropped to 0.34% of average loans compared to 0.44%. The provision for credit losses totaled $914 million.
WFC rose 1.9% during the previous week, which was shortened by a holiday, climbing from $85.51 on July 2 to $87.16 on July 10.
The immediate calendar features June housing starts, set for release on Friday, July 17. June new-home sales data is due out July 24. Together, these reports will help define the interest-rate-driven housing environment.
Investors are also expecting the board’s approval in July for a quarterly dividend of 50 cents, marking an 11% rise from the previous 45 cents.
Risks: Venture profits may turn, deal fees could decelerate, and deposit costs have potential to increase. Quicker loan expansion might also lead to increased future credit costs.
The recent rebound has offset the loss posted on earnings day. The next challenge is for core spread income to reach the same level.
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