Wells Fargo (WFC NYSE) Reports Second Quarter 2025 Results

# Wells Fargo (WFC: NYSE) Reports Second Quarter 2025 Results

Wells Fargo released its second quarter 2025 report on July 15, 2025, indicating robust financial performance amid a changing economic landscape.

## Financial Highlights

– **Net Income**: $5.5 billion, or $1.60 per diluted share, compared to $4.9 billion, or $1.33 per diluted share in Q2 2024.
– **Total Revenue**: Increased to **$20.8 billion**, up **0.6%** from $20.7 billion in Q2 2024.
– **Noninterest Expense**: Rose to $13.4 billion, an increase of **0.6%** compared to $13.3 billion in the same quarter last year.
– **Provision for Credit Losses**: Decreased to **$1.0 billion**, down **18.7%** from $1.2 billion a year ago.
– **Return on Equity (ROE)**: Reached **12.8%**, compared to **11.5%** in Q2 2024.
– **Return on Tangible Common Equity (ROTCE)**: Improved to **15.2%** from **13.7%** in the same period last year.
– **Common Equity Tier 1 (CET1) Ratio**: Steady at **11.1%**, up from **11.0%** a year ago.
– **Average Loans**: $916.7 billion, slightly decreased by **0.03%** from $917.0 billion in Q2 2024.
– **Average Deposits**: $1,331.7 billion, down **1.1%** from $1,346.5 billion in the previous year.

## Operating Segments Analysis

### Consumer Banking and Lending
– Revenue of **$9.2 billion**, representing a **2%** increase from Q2 2024.
– Notable growth in **Credit Card income**, up by **9%** due to higher loan balances.
– **Auto Lending** decreased by **15%** due to lower loan balances and compression of loans spreads.

### Commercial Banking
– Revenue of **$2.9 billion**, down **6%** compared to Q2 2024.
– **Net interest income** fell **13%** due to lower interest rates.
– **Noninterest income** showed a recovery, increasing **13%** driven by tax credit investments.

### Corporate and Investment Banking
– Revenue declined by **3%** to **$4.7 billion** year-over-year.
– **Banking income** decreased **5%** affected by lower interest rates and revenues were offset by higher advisory fees.

### Wealth and Investment Management
– Revenue increased **1%** to **$3.9 billion**.
– **Noninterest income** grew **2%** from higher market valuations.

## Shareholder Returns
– **Share Repurchase**: The company repurchased **43.9 million shares**, totaling **$3.0 billion** in the second quarter.
– **Dividend Announcement**: Anticipating a **12.5%** increase in the common stock dividend for Q3 2025, subject to board approval.

## Key Changes and Comments
– CEO Charlie Scharf emphasized accomplishments like the lifting of the asset cap, acknowledging it as a milestone for Wells Fargo’s transformation.
– The company continues to focus on organic growth while being mindful of expense management and risks associated with the economic environment.

### Comparison of Key Metrics
– **Net Interest Income**:
– Q2 2025: $11.7 billion (-2% from Q2 2024)
– Noninterest Income*:
– Q2 2025: $9.1 billion (+4% from Q2 2024)

*Includes gain associated with a merchant services joint venture acquisition.

### Credit Quality Metrics
– **Net Loan Charge-Offs**: $997 million, demonstrating improved credit performance, down from $1.3 billion a year ago, and as a percentage of average loans, this represents **0.44%**, down from **0.57%** in the previous year.
– **Nonaccrual Loans**: Total of $7.8 billion, which is **0.84%** of total loans, down from **0.92%** in Q2 2024, indicating stronger credit quality.

## Conclusion
With significant growth in earnings per share and strategic pathways to enhance shareholder value, Wells Fargo’s second quarter results reflect a company adapting and thriving in a competitive landscape, while emphasizing its transformation and focus on stability and growth.