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Wells Fargo Reports $4.89B Q1 Profit, Surpassing Expectations Amid Risk Control Progress
By Ishika Dangayach - Apr 11, 2025, 07:45 AM ET
Wells Fargo reported a $4.89 billion profit in Q1, beating earnings expectations and closing five regulatory consent orders. The results reflect strong momentum and continued progress on risk controls.
Wells Fargo & Co. (WFC) reported strong first-quarter results on Friday, surpassing Wall Street expectations for earnings while falling slightly short on revenue forecasts.
The San Francisco-based banking giant posted a net income of $4.89 billion for the first quarter. Earnings came in at $1.39 per share. Adjusted for pretax and non-recurring gains, earnings were $1.27 per share, exceeding the average analyst estimate of $1.23 per share, according to Zacks Investment Research.
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CEO Charlie Scharf highlighted the bank’s momentum and operational improvements. “We produced solid results with diluted earnings per share increasing 16% from a year ago reflecting fee-based revenue growth across many of our core businesses, continued expense discipline, improved credit results, and an 8% reduction in diluted common shares as we continued to return capital to shareholders,” Scharf said .
As the largest U.S. mortgage lender, Wells Fargo recorded $29.63 billion in total revenue for the quarter. However, its revenue net of interest expense came in at $20.15 billion, just under the $20.8 billion anticipated by analysts surveyed by Zacks.
Scharf also emphasized the bank’s recent achievements in addressing regulatory concerns. “This quarter was an important proof point regarding our prior comments about our confidence in our progress on our risk and control work,” he said. “Five consent orders were closed this past quarter and eleven have been closed since 2019. These recent closures reflect that we have completed much of the common risk and control infrastructure work across the company that is required by other orders.”
Despite the slight revenue miss, the earnings beat and the progress on compliance issues offer positive signals for investors, as the bank works to restore its reputation following years of regulatory scrutiny.
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