Wells Fargo Appoints CEO Charlie Scharf As Chairman After Q3 Earnings Beat Estimates

Wells Fargo on Tuesday announced that it has appointed its CEO, Charlie Scharf, as Chairman of the Board after reporting a 17% increase in diluted earnings per share (EPS) in the third quarter (Q3).

The bank reported diluted EPS of $1.66 for the three months through the end of September, up from $1.42 in the corresponding quarter of 2024, and beating an analyst estimate of $1.53, according to data from Fiscal AI.

Revenue for the quarter came in at $21.44 billion, up 5% year-on-year and above an estimated $21.11 billion.

Shares of WFC traded 3% higher in the pre-market session at the time of writing. On Stocktwits, retail sentiment around WFC stock stayed within the ‘bullish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

The bank now expects its full-year net interest income to be roughly in line with the 2024 level of $47.7 billion, in line with its prior guidance. For the fourth quarter (Q4), the bank expects net interest income to be $12.4-$12.5 billion, up from the $11.95 billion reported in Q3.

The lender added that it is now targeting a return on tangible common equity (ROTCE) of 17% to 18% over the medium-term, up from its prior target of 15%. For Q3, its ROTCE stood at 15.2%, while the return on equity (ROE) came in at 12.8%.

“We grew our balance sheet, including the highest linked-quarter loan growth in over three years. Credit performance was strong and continued to improve. We returned a significant amount of capital to our shareholders in the third quarter including increasing our common stock dividend by 12.5% and repurchasing $6.1 billion of common stock,” Scharf said.

“While some economic uncertainty remains, the U.S. economy has been resilient and the financial health of our clients and customers remains strong. Spending on debit and credit cards continued to increase, auto loan originations had strong growth from a year ago, and total client assets in our Wealth and Investment Management business continued to grow.”

WFC stock is up by 12% this year and by 27% over the past 12 months. 

Read also: Johnson & Johnson To Separate Its Orthopedic Business

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