Wells Fargo earnings beat expectations despite weaker‑than‑forecast revenue

13th Oct 2026 12:37

(Sharecast News) - US lender Wells Fargo posted higher third‑quarter profits on Tuesday, as loan growth and firmer interest income continued to support performance, but revenues disappointed.

Wells Fargo reported net income of $5.95bn, or $1.87 a share, up from $5.59bn or $1.66 a year earlier. However, revenues of $21.87bn missed consensus estimates of $22.31bn.

Net interest income rose 5% to $12.52bn, helped by the removal of the Fed's long‑standing asset cap, which has allowed Wells to deploy more of its balance sheet and compete more aggressively for lending.

Growth in credit‑card and auto loans underpinned a solid consumer book, reflecting still‑resilient spending trends. Average loans grew 11% year-on-year to $1.03trn, while average deposits rose 11% to $1.48trn.

The bank's provision for credit losses rose to $1.03bn, up from $681m a year earlier, reflecting higher allowances tied to growth in commercial, industrial and auto lending. Net charge‑offs increased to $983m, equivalent to 0.38% of average total loans on an annualised basis.

Wells Fargo also said underlying customer behaviour remained healthy despite mixed sentiment, with chief executive Charlie Scharf noting that both consumer and business clients were "doing well".

As of 1320 BST, Wells Fargo shares were down 1.39% in pre-market action at $82.16 each.

Reporting by Iain Gilbert at Sharecast.com