Wells Fargo beats profit estimates despite revenue miss

Investing.com -- Wells Fargo & Co. (NYSE: WFC) reported third-quarter results on Tuesday ahead of the open, with earnings topping expectations but revenue disappointing. Shares are down 1.1% in premarket trading after the release.

Net income of $6.0 billion, or $1.87 per diluted share, exceeded analyst estimates of $1.84 per share. However, revenue of $21.87 billion fell short of the consensus estimate of $22.31 billion, representing a 2% increase YoY from $21.44 billion.

Net interest income reached $12.52 billion, up 5% YoY, but missed the analyst estimate of $12.59 billion. The bank’s earnings per share increased 13% from $1.66 in the third quarter of 2025, driven by broad-based growth across business segments and improved efficiency. Average loans grew 11% YoY to $1.03 trillion, while average deposits increased 11% to $1.48 trillion.

"Our third quarter results reflect broad-based growth, higher earnings, and stronger returns," said Chairman and CEO Charlie Scharf. "Diluted earnings per share increased to $1.87 in the third quarter, up 13% from a year ago."

Return on average tangible common equity improved to 16.3% from 15.2% a year ago. The efficiency ratio improved to 63% from 65% in the prior year period, as noninterest expense declined 1% to $13.74 billion despite a 15% increase in revenue-related expenses.

Wealth and Investment Management revenue grew 12% YoY, Commercial Banking increased 6%, and Consumer Banking and Lending rose 5%. Corporate and Investment Banking revenue increased 3%, with investment banking fees up 10% and equities revenue growing 21%.

The provision for credit losses increased to $1.03 billion from $681 million a year ago, reflecting higher allowances for commercial and industrial loans and auto loans driven by loan growth. Net charge-offs were $983 million, or 0.38% of average total loans on an annualized basis.

The Common Equity Tier 1 ratio was 10.0%, down from 11.0% a year ago.

Original Article

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