Wells Fargo & Co (NYSE:WFC, ETR:NWT) shares edged lower before Friday’s opening bell as the bank posted a year-over-year drop in revenue to $20.15 billion, short of analyst projections of $20.7 billion.
Net interest income fell 6% from the year-ago quarter to $11.5 billion, attributed to lower interest rates, partially offset by reduced deposit pricing and increased balances.
However, net income topped estimates. For the quarter, the bank’s net income increased 6% year-over-year to $4.9 billion or $1.39 per share, compared to estimates of $4 billion or $1.23 per share.
Wells Fargo CEO Charlie Scharf highlighted economic uncertainties stemming from US trade policies and tariffs but expressed confidence in the bank's resilience.
“We expect continued volatility and uncertainty and are prepared for a slower economic environment in 2025, but the actual outcome will be dependent on the results and timing of the policy changes,” Scharf said.
“We are prepared for a variety of outcomes, our focus is unwavering, and we will continue transforming Wells Fargo by investing to build a well-controlled, faster-growing and a higher-returning company while we work to better serve our customers and become more efficient.”
Shares of Wells Fargo traded down 2.1% at about $62 premarket.