Wells Fargo Q1 2025 Earnings: Revenue Falls Short Of Estimates, CEO Says Bank Supports Trump Administration’s ‘Willingness To Look At Barriers To Fair Trade’

Shares of Wells Fargo & Co. (WFC) fell over 2% on Friday morning after the bank reported a rise in first-quarter earnings, but its revenue failed to meet Street estimates.

Revenue rose 3% year-over-year (YoY) to $20.15 billion, which failed to meet an analyst estimate of $20.76 billion, per FinChat data. Earnings per share (EPS) stood at $1.39 versus a Street estimate of $1.22. Net income rose 6% to $4.89 billion.

CEO Charlie Scharf said that the bank supports the Trump administration’s willingness to examine barriers to fair trade in the U.S. but acknowledged that such significant actions have risks.

“Timely resolution which benefits the U.S. would be good for businesses, consumers, and the markets. We expect continued volatility and uncertainty and are prepared for a slower economic environment in 2025, but the actual outcome will be dependent on the results and timing of the policy changes,” he said.

Scharf asserted that the lender is prepared for a variety of outcomes.

Meanwhile, the net interest income (NII), the difference between interest earned and expended, decreased by 6%, 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 market funding.

Non-interest income remained stable and included a gain on the sale of our commercial non-agency third-party servicing business, an increase in asset-based fees in Wealth and Investment Management on higher market valuations, and higher investment banking fees.

Provision for credit losses fell marginally to $932 million during the quarter. This included a decrease in the allowance for credit losses, reflecting a lower allowance for commercial real estate loans on lower loan balances.

Investment banking earnings rose 13% to $534 million during the quarter.

WFC shares have lost 10% in 2025 but have gained over 11% in the past 12 months.

Also See: JPMorgan Q1 2025 Earnings Beat Wall Street Expectations: CEO Jamie Dimon Cautions ‘Economy Is Facing Considerable Turbulence’

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