Wells Fargo & Company

Second-quarter diluted EPS was $2, up 25% from a year ago. Earnings were $4.1 billion, up 17% year over year. Revenue grew 9% year over year. Net interest income increased $690 million, or 5%, from a year ago. Noninterest income rose $1.2 billion, or 13%, from a year ago, including over $10 billion in noninterest income and $847 million in unrealized and realized net equity gains, or $640 million after noncontrolling interest. Noninterest expense increased $282 million, or 2%, and the efficiency ratio improved to 60%, down 4 percentage points year over year. Net loan charge-offs fell to 34 basis points, down 10 basis points year over year. Average loans increased $110 billion, or 12%, and average deposits increased $134 billion, or 10%, both year over year. CET1 was 10.3%. Guidance: Wells Fargo maintained 2026 net interest income guidance at $50 billion plus or minus, with net interest income excluding markets expected to be approximately $48 billion, and 2026 noninterest expense expected to be approximately $55.7 billion. Management said third-quarter NIM should see modest compression, broadly in line with the second-quarter decline from the first quarter, before stabilizing in the fourth quarter.

Charles Scharf emphasized that the quarter reflected broad-based strength across the franchise and that the bank is benefiting both from a favorable U.S. backdrop and from multi-year investments in growth, efficiency, and risk discipline. He highlighted stronger consumer and commercial growth, better balance-sheet flexibility, and improving returns, saying the bank is moving toward a sustainable 17% to 18% RoTCE. His tone was confident but measured, repeatedly noting that growth must be paced carefully and that the firm is watching for signs of excess risk in markets.

Michael Santomassimo said second-quarter results were driven by broad-based revenue growth, disciplined expense management, and improved credit performance. He cited net interest income of $690 million above last year, NIM down 4 basis points sequentially, average loans up 12%, average deposits up 10%, noninterest income above $10 billion, expense growth of only 2%, and CET1 at 10.3%. He also outlined full-year expectations: NII of $50 billion plus or minus, NII excluding markets around $48 billion, and noninterest expense near $55.7 billion, while noting that revenue-related expenses could run somewhat higher in the second half but other expenses should be lower as efficiency efforts continue.

Analysts focused heavily on NIM, deposit costs, and whether growth in markets and cards would keep pressuring margins. Management said the third-quarter NIM should see a small decline and then stabilize in the fourth quarter, with market-balance-sheet growth moderating and deposit costs ticking up only modestly as interest-bearing balances rise. They also said the increased card growth is intentional, that the new accounts are higher quality and mostly coming through branches or the bank’s own channels, and that profitability should improve as vintages season over the next couple of years.