Wells Fargo & Co (NYSE:WFC, XETRA:NWT) shares fell 4.5% in early trade after the bank reported mixed fourth quarter 2025 results that disappointed investors on several key metrics.
The bank posted total revenue of $21.29 billion, up 4% from a year earlier but below Wall Street’s forecast of $21.65 billion.
Adjusted earnings per share came in at $1.76, exceeding expectations of $1.69. Net interest income increased, though the net interest margin came in at 2.6%, slightly under the 2.7% anticipated.
The efficiency ratio rose to 64%, higher than the 62.7% analysts had expected.
Net income for the quarter was $5.36 billion, or $1.62 per diluted share, compared with $5.08 billion, or $1.43 per share, in Q4 2024.
Excluding a notable item, a $612 million severance charge, net income would have been $5.8 billion, or $1.76 per diluted share.
Average loans grew to $955.8 billion, while average deposits reached $1.38 trillion. Gains were seen across the bank’s operating segments: corporate and investment banking loans rose 6%, consumer banking and lending loans were up 1%, and wealth and investment management loans increased 3%.
Wells Fargo CEO Charlie Scharf highlighted the bank’s progress in 2025, pointing to stronger growth across consumer and commercial businesses, improved returns on tangible common equity, and strategic capital returns.
“Strong financial performance, removal of the asset cap imposed by the Federal Reserve, termination of multiple consent orders, and stronger growth in both our consumer and commercial businesses make me proud of our 2025 results,” Scharf said. “We are excited to now compete on a level playing field and are able to dedicate even more resources to growth.”