Wells Fargo & Company

What they do

Wells Fargo provides diversified banking, investment, mortgage, consumer and commercial finance, and wealth management products and services to individuals, businesses, and institutions primarily in the U.S. It operates through four reportable segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. As of December 31, 2025, it had approximately $2.1 trillion in assets, $986.2 billion in loans, $1.4 trillion in deposits, and $181.1 billion in stockholders' equity.

Revenue drivers

• Consumer Banking and Lending — Includes consumer checking and savings accounts, credit and debit cards, home, auto, personal, and small business lending; reported $10.3 billion revenue in 2Q26, up 6% year-over-year, with consumer primary checking account growth for 13 consecutive quarters and new credit card accounts up 46%.
• Commercial Banking — Provides banking and credit products, secured lending, lease products, and treasury management to private, family-owned, and public companies; reported $3.9 billion revenue in 2Q26, up 6% year-over-year, with average loans up 9% and average deposits up 10% (excluding 3Q25 transfer).
• Corporate and Investment Banking — Offers capital markets, investment banking, commercial real estate lending, and treasury management to corporate and institutional clients; reported $5.4 billion revenue in 2Q26, up 16% year-over-year, driven by markets revenue up 24% and banking revenue up 20%.
• Wealth and Investment Management — Provides personalized wealth management, brokerage, financial planning, lending, private banking, and trust services; reported $3.1 billion revenue in 2Q26, up 13% year-over-year, with client assets up 15% and Premier client assets up 13%.

Recent performance

In 2Q26, Wells Fargo reported net income of $6.4 billion, or $2.00 per diluted share, up from $1.60 in both 1Q26 and 2Q25. Revenue was $22.6 billion, up 9% year-over-year, driven by net interest income of $12.3 billion (up 5%) and noninterest income of $10.3 billion (up 13%). Noninterest expense was $13.7 billion, up 2%, and pre-tax pre-provision profit was $9.0 billion, up 20%. Return on equity was 15.0% and ROTCE was 17.7%, with a provision for credit losses of $914 million and net loan charge-offs of 0.34% of average loans.

Strategy

Management is focused on improving financial results and returns, as evidenced by clear progress on the path to improved results. They are investing in employees through market-competitive compensation, career-development, and benefits, while promoting effective risk management and pay-for-performance compensation principles. The company is also driving growth across all businesses, with growth in consumer primary checking accounts, credit card accounts, auto originations, and client assets, and leveraging its securities-based lending and capital markets capabilities.

Risks

• Interest rate risk — Lower interest rates could compress net interest income, as floating rate assets reprice lower, partially offset only by lower deposit costs and higher loan balances.
• Regulatory scrutiny — As a large bank holding company, Wells Fargo faces ongoing regulatory expectations and potential actions, which could impact capital, operations, and costs.
• Credit risk — Deterioration in credit quality across loan portfolios, particularly in consumer and commercial lending, could increase provision for credit losses and charge-offs.
• Competition — Intense competition in banking, capital markets, and wealth management could pressure margins and market share in key segments.

Outlook

Management did not provide specific forward-looking guidance in the provided excerpts, but they highlighted growth across all businesses, with continued focus on improving returns. The company is investing in headcount and technology to support growth, though headcount declined to 197,000 in 2Q26 from 213,000 in 2Q25. They expect to continue delivering progress on financial results and returns, while managing expenses and credit quality.