On Friday, April 11, the value of Wells Fargo shares showed a drop as the financial institution reported revenue for the first quarter of 2025, which turned out to be below preliminary expectations, and a decrease in net interest income.
The revenue of the mentioned bank for January-March of the current year was recorded at the $20.15 billion mark. This indicator showed a decrease of 3% over the same period in 2024. At the same time, the consensus forecast of analysts surveyed LSEG estimated that the financial institution’s revenue for the first quarter of 2025 would be fixed at the $20.75 billion mark.
The net interest income of Wells Fargo, the main measure of how much the bank makes money on loans, amounted to $11.5 billion in January-March of the current year. This figure fell by 6% compared to the reading for the same period in 2024.
The bank’s noninterest income for the first quarter of 2025 was recorded at the $8.64 billion mark. This indicator increased by 1% year-on-year. It is worth clarifying that noninterest income includes investment banking fees, brokerage commissions, and advisory fees.
Adjusted earnings per share amounted to $1.33. The consensus forecast of analysts surveyed by LSEG predicted that this figure would reach $1.24.
After the earnings data was published, the value of the financial institution’s shares fell by 1%.
Wells Fargo chief executive officer Charlie Scharf drew attention to the uncertainty in the economy brought on by the President of the United States, Donald Trump’s administration’s actions to reorient global trade. The head of the bank also called for a timely resolution.
As we have reported earlier, JPMorgan Tops Quarterly Expectations.
