Shares of Wells Fargo rose nearly 2% in premarket trading on Wednesday, following the release of the bank's impressive fourth-quarter earnings report. The financial institution reported adjusted earnings per share of $1.42, surpassing analysts' expectations of $1.35. This strong performance was bolstered by net income figures, which reached $5.1 billion, or $1.43 per diluted common share, marking a 47% increase from the same period last year.
Although revenue fell slightly short of expectations, totaling $20.38 billion compared to the anticipated $20.59 billion, Wells Fargo issued robust guidance for 2025. The bank expects net interest income to rise by 1% to 3% over the 2024 figure of $47.7 billion, signaling a positive outlook for future growth.
Wells Fargo's investment banking fees experienced a notable surge, climbing 59% to $725 million in the fourth quarter compared to the previous year. This significant increase contributed to the bank's ability to return approximately $25 billion in capital to its shareholders, further demonstrating its solid financial standing.
The bank's earnings profile continues to improve as it reaps the benefits of strategic investments aimed at enhancing growth and customer service. Additionally, Wells Fargo has maintained a strong balance sheet and made considerable progress in its risk and control efforts. These advancements underscore the bank's commitment to financial stability and operational excellence.
"Our solid performance this quarter caps a year of significant progress for Wells Fargo," said CEO Charlie Scharf.
The bank's report, informed by a survey of analysts conducted by LSEG, highlighted these achievements while acknowledging that revenue slightly missed expectations. Despite this, the overall financial health of Wells Fargo remains robust, with the bank well-positioned for continued success in the coming years.