Wells Fargo & Company · NYSE:WFC
Wells Fargo & — Q1 2025 Earnings Presentation
21 slides from Wells Fargo &'s earnings presentation, Apr 11, 2025
Slide 1: 1Q25 Financial Results
1Q25 Financial Results April 11, 2025 © 2025 Wells Fargo Bank, N.A. All rights reserved.
Slide 2: 1Q25 results
1Q25 results • Net income of $4.9 billion, or $1.39 per diluted common share, included: ($ in millions, except EPS) Pre-tax Income EPS Discrete tax benefits related to the resolution of prior period matters $313 $0.09 Gain on the previously announced sale of the non-agency third party servicing 263
Slide 3: 1Q25 earnings
1Q25 earnings Quarter ended $ Change from $ in millions, except per share data 1Q25 4Q24 1Q24 4Q24 1Q24 Net interest income $11,495 11,836 12,227 ($341) (732) Noninterest income 8,654 8,542 8,636 112 18 Total revenue 20,149 20,378 20,863 (229) (714) Net charge-offs 1,009 1,188 1,157 (179) (148) Chan
Slide 4: Net interest income
Net interest income Net Interest Income ($ in millions) • Net interest income down $732 million, or 6%, from 1Q24 driven by the impact of lower interest rates on floating rate assets, deposit mix and pricing changes, lower loan balances, and one fewer day in the quarter, partially offset by lower ma
Slide 5: Loans and deposits
Loans and deposits Average Loans Outstanding ($ in billions) Average Deposits ($ in billions) 1,341.6 1,346.5 1,341.7 1,353.8 1,339.3 928.1 917.0 910.3 906.4 908.2 111.1 92.6 72.5 50.5 119.6 108.0 118.3 123.4 Corporate 101.5 102.8 386.0 382.2 379.7 375.0 194.3 205.1 203.9 Wealth and 378.1 183.3 187.
Slide 6: Noninterest income
Noninterest income Noninterest Income ($ in millions) • Noninterest income stable with 1Q24 1 – Investment advisory fees and brokerage commissions up $217 million, or 7%, driven by higher asset-based fees reflecting higher market valuations 8,636 8,766 8,676 8,654 – Net gains from trading activities
Slide 7: Noninterest expense
Noninterest expense Noninterest Expense ($ in millions) • Noninterest expense down $447 million, or 3%, from 1Q24 – Operating losses down $490 million 2 – FDIC special assessment down $261 million 14,338 13,900 13,891 – Personnel expense down $18 million on the impact of efficiency initiatives, 633
Slide 8: Credit quality: net loan charge-offs
Credit quality: net loan charge-offs 1 Provision for Credit Losses and Net Loan Charge-offs ($ in millions) • Commercial net loan charge-offs down $192 million to 16 bps of average loans (annualized) reflecting a $166 million decrease in commercial real estate (CRE) net loan charge-offs 1,301 – CRE
Slide 9: Credit quality: allowance for credit losses for loans
Credit quality: allowance for credit losses for loans Allowance for Credit Losses for Loans ($ in millions) • Allowance for credit losses (ACL) for loans down $84 million reflecting a lower allowance for commercial real estate loans on lower loan balances, partially offset by a higher allowance for
Slide 10: Capital and liquidity
Capital and liquidity 1 Common Equity Tier 1 Ratio under the Standardized Approach Capital Position 1 • Common Equity Tier 1 (CET1) ratio of 11.1% at March 31, 2025 11.2% 11.3% • CET1 ratio down 10 bps from 1Q24 and stable with 4Q24 11.0% 11.1% 11.1% – An increase in accumulated other comprehensive
Slide 11: Consumer Banking and Lending (CBL)
Consumer Banking and Lending (CBL) Summary Financials • Total revenue down 2% YoY and down 1% from 4Q24 $ in millions (mm) 1Q25 vs. 4Q24 vs. 1Q24 – CSBB down 2% YoY driven by lower net interest income; down 1% from 4Q24 Revenue by line of business: on lower net interest income and seasonally lower d
Slide 12: Commercial Banking (CB)
Commercial Banking (CB) Summary Financials • Total revenue down 7% YoY and down 8% from 4Q24 $ in millions 1Q25 vs. 4Q24 vs. 1Q24 – Net interest income down 13% YoY driven by the impact of lower interest Earnings rates, partially offset by lower deposit pricing and higher deposit balances; Net inter
Slide 13: Corporate and Investment Banking (CIB)
Corporate and Investment Banking (CIB) Summary Financials • Total revenue up 2% YoY and up 10% from 4Q24 $ in millions 1Q25 vs. 4Q24 vs. 1Q24 Revenue by line of business: – Banking revenue down 4% YoY driven by the impact of lower interest rates, partially offset by lower deposit pricing and higher
Slide 14: Wealth and Investment Management (WIM)
Wealth and Investment Management (WIM) Summary Financials • Total revenue up 4% YoY and down 2% from 4Q24 $ in millions 1Q25 vs. 4Q24 vs. 1Q24 – Net interest income down 5% YoY driven by higher deposit costs, partially Net interest income $826 ($30) (43) offset by higher deposit and loan balances; d
Slide 15: Corporate
Corporate Summary Financials • Revenue decreased YoY reflecting lower results from our venture capital $ in millions 1Q25 vs. 4Q24 vs. 1Q24 investments and higher net losses on debt securities related to a Net interest income $36 $300 4 repositioning of the investment portfolio Noninterest income (2
Slide 16: Outlook
Outlook Expect 2025 net interest income to be ~1% to 3% higher than in 2024, unchanged from Net Interest prior guidance Income • Net interest income performance will ultimately be determined by a variety of factors, many of which are uncertain, including the absolute level of rates and the shape of
Slide 17: Endnotes
Endnotes Page 2 – 1Q25 results 1. Tangible common equity and return on average tangible common equity (ROTCE) are non-GAAP financial measures. For additional information, including a corresponding reconciliation to GAAP financial measures, see the “Tangible Common Equity” table on page 19. 2. The ef
Slide 18: Endnotes (continued)
Endnotes (continued) Page 8 – Credit quality: net loan charge-offs 1. Includes provision for credit losses for loans, debt securities, and other financial assets. Page 10 – Capital and liquidity 1. The Common Equity Tier 1 (CET1) ratio calculated under the Standardized Approach is our binding CET1 r
Slide 19: Tangible Common Equity
Tangible Common Equity Wells Fargo & Company and Subsidiaries TANGIBLE COMMON EQUITY We also evaluate our business based on certain ratios that utilize tangible common equity. Tangible common equity is a non-GAAP financial measure and represents total equity less preferred equity, noncontrolling int
Slide 20: Common Equity Tier 1 under Basel III
Common Equity Tier 1 under Basel III Wells Fargo & Company and Subsidiaries 1 RISK-BASED CAPITAL RATIOS UNDER BASEL III Estimated Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, ($ in billions) 2025 2024 2024 2024 2024 Total equity $182.9 181.1 185.0 178.1 182.7 Adjustments: Preferred stock (18.6) (18.6) (1
Slide 21: Disclaimer and forward-looking statements
Disclaimer and forward-looking statements Financial results reported in this document are preliminary. Final financial results and other disclosures will be reported in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and may differ materially from the results and disclosures
Wells Fargo & Company — Q1 2025 Earnings Presentation on 6ix