NEW YORK, April 14, 2026, 08:04 EDT
Wells Fargo turned in a stronger profit for the first quarter on Tuesday—net income climbed 7% to $5.25 billion, or $1.60 a share, topping expectations. Still, a softer showing on revenue and lackluster core lending metrics took the edge off. Revenue landed at $21.45 billion, and net interest income was $12.1 billion, both falling short of some Wall Street calls. The stock slipped premarket.
That’s significant right now: investors want to see if Wells can translate its newfound balance-sheet flexibility into more reliable growth. The Federal Reserve removed its $1.95 trillion asset cap in June 2025, a restriction imposed after the fake-accounts scandal. The latest report drops as major bank earnings pick up and lower U.S. rates squeeze lending margins, even as loan growth shows signs of improvement.
Net interest income came in light, with Wells Fargo posting $12.1 billion—short of the roughly $12.3 billion analysts had penciled in. Average loans climbed 10%, reaching $996 billion, but the average loan yield dropped to 5.62% from 5.96% a year ago. Lower rates played a part, weighing on returns from floating-rate assets.
Lending wasn’t the only drag on revenue this time. Noninterest income—fees and other non-loan revenue—came in at $9.35 billion, missing the $9.5 billion analyst consensus. The bank pointed to stronger venture-capital returns and higher asset-based fees, though those were dented by a drop in mortgage banking fees.
Chief Executive Charlie Scharf credited ongoing investments for the quarter’s results, highlighting 11% loan growth, a 7% rise in deposits, and a 15% jump in diluted earnings per share. Wells Fargo repurchased $4 billion in stock during the same period.
The corporate and investment bank stood out this quarter. Markets revenue shot up 19% to $2.17 billion, while investment-banking revenue climbed 13%, hitting $602 million. Volatile markets and a pickup in client activity fueled the gains, mirroring trends at JPMorgan and Goldman Sachs. JPMorgan’s Jamie Dimon flagged an “increasingly complex set of risks,” though profit still got a boost from brisk trading and dealmaking. wellsfargo.com
Wells kept its 2026 forecast steady: net interest income still tracking around $50 billion, noninterest expense holding at $55.7 billion. After months of rate-whiplash, investors may be watching that unbudging guidance as closely as the current quarter.
The quarter had its trouble spots. Provision for credit losses jumped 22% year-over-year, reaching $1.135 billion. And scrutiny isn’t fading on Wells’s $210.2 billion loan book with nonbank financial clients, a segment drawing fresh focus as private credit strains — lending that sidesteps banks — keep ratcheting up attention on that market.
“While markets have been volatile, we still see continued resiliency in the underlying economy,” Scharf said. He cautioned, though, that higher oil prices could take a while to filter through. Right now, that’s the big risk for Wells: loan growth’s picking up, trading is heading in the right direction, but those annual targets remain exposed if rates drop, energy costs climb, or credit sours. wellsfargo.com
The stock slipped another 2.2% in premarket action following the results, piling onto losses that had already dragged shares down 7% for the year as of Monday’s close. JPMorgan also traded lower before the open, even after topping profit forecasts—investors seemed less impressed by headline beats, zeroing in instead on revenue details and what’s next.
