Wells Fargo Reports $4.9 Billion Net Income in Q1 2025, Revenue Declines to $20.1 Billion

Wells Fargo & Company reported a net income of $4.9 billion for the first quarter of 2025, translating to diluted earnings per share of $1.39, an increase from $4.6 billion and $1.20 per share in the same period last year. The bank's total revenue for the quarter was $20.1 billion, a decrease from $20.9 billion in the first quarter of 2024, primarily due to a decline in net interest income, which fell by $732 million. This decline was partially offset by an increase in noninterest income, which rose by $18 million to $8.7 billion, driven by higher investment advisory fees and mortgage banking income.

In terms of operational metrics, Wells Fargo's average loans decreased to $908.2 billion from $928.1 billion a year earlier, with notable declines in commercial real estate and residential mortgage portfolios. Average deposits also saw a decrease, totaling $1.36 trillion, down from $1.37 trillion in the previous year. The bank's headcount remained stable at approximately 240,000 employees as of March 31, 2025. The Common Equity Tier 1 (CET1) capital ratio stood at 11.09%, exceeding the regulatory minimum of 9.80%, while the liquidity coverage ratio was reported at 125%, above the required 100%.

Strategically, Wells Fargo completed the acquisition of the remaining interest in its merchant processing services joint venture, Wells Fargo Merchant Services, in April 2025. This acquisition is expected to enhance the bank's capabilities in payment processing and increase its market share in the merchant services sector. The bank continues to focus on strengthening its risk and control infrastructure, particularly in light of ongoing regulatory scrutiny and consent orders that limit its asset growth.

Looking ahead, Wells Fargo anticipates continued challenges in the current economic environment, including potential impacts from interest rate fluctuations and credit quality concerns. The bank's management has indicated a commitment to maintaining strong capital and liquidity positions while navigating these challenges. The outlook remains cautious, with expectations for ongoing regulatory compliance efforts and a focus on improving operational efficiency.