New York, Jan 14, 2026, 08:41 (EST) — Premarket
- Shares of Wells Fargo slip in premarket trading after the bank’s 2026 net interest income forecast misses expectations
- Fourth-quarter profit increased, yet core interest income and earnings fell short of Wall Street estimates
- At 10 a.m. ET, investors will get a closer look at loan growth, expenses, and credit trends during a scheduled call
Wells Fargo & Co (WFC.N) shares dropped roughly 1.5% in early trading Wednesday following fourth-quarter results that missed Wall Street expectations. The bank’s 2026 interest-income forecast also fell short of investor hopes.
This matters because investors keep pressing big U.S. banks on one straightforward issue: can they maintain net interest income if rates slip? Net interest income is basically the difference between what banks earn on loans and what they shell out on deposits.
Wells Fargo faces mounting pressure amid a separate challenge: the bank’s push to resume growth after years held back by regulatory limits. Any sign that interest income is leveling off sparks an immediate hit to its stock.
Wells Fargo reported quarterly net income of $5.36 billion, or $1.62 per share, with revenue climbing to $21.29 billion. Net interest income was up 4%, hitting $12.33 billion. The quarter also carried a $612 million severance charge related to job cuts.
Wells Fargo fell short of analysts’ expectations on profit and net interest income, projecting roughly $50 billion in net interest income for 2026—just under consensus estimates. Reuters noted that a year ago, the bank faced a $1.95 trillion asset cap until the Federal Reserve planned to lift it in June 2025.
Chief executive Charlie Scharf highlighted the end of the Fed asset cap and the lifting of several consent orders as key factors behind a more ambitious medium-term profit goal. He said the bank is “excited to now compete on a level playing field,” setting a medium-term return on tangible common equity target between 17% and 18%. SEC
Wells Fargo’s slide deck projects net interest income hitting roughly $50 billion in 2026, assuming the Fed cuts rates two to three times this year and the 10-year Treasury yield stays fairly stable. The bank is also forecasting expenses around $55.7 billion as it ramps up investments and drives “efficiency initiatives.” SEC
Credit continues to be a hot spot, particularly in commercial real estate. The bank’s supplemental filings revealed increased net loan charge-offs in commercial real estate, mainly hitting the office portfolio. Consumer net charge-offs also edged up, driven by rising losses on credit cards and auto loans.
Investors will focus on this risk: a weaker economy might dent loan demand, maintain fierce deposit competition, and flip the narrative from “rate cuts ease funding costs” to “credit costs take a bite.” Wells Fargo’s push to refocus on growth leaves little room for mistakes.
Wells Fargo will host its earnings call at 10:00 a.m. Eastern. Investors want clarity on deposit pricing, the speed of balance-sheet expansion now that the cap is lifted, and just how solid the 2026 expense and net interest income forecasts are.
