Wells Fargo & Company

Second-quarter earnings were $4.1 billion, diluted EPS was $2, revenue grew 9% year over year, net interest income increased $690 million, or 5%, and noninterest income increased $1.2 billion, or 13%. Expenses increased $282 million, or 2%, while the efficiency ratio improved to 60%. Credit remained solid: net loan charge-offs were 34 basis points of average loans, down 10 basis points from a year ago. Capital stayed strong with CET1 at 10.3%, and Wells Fargo repurchased $3 billion of common stock in the quarter and $7 billion in the first half. For 2026, management maintained guidance for net interest income of $50 billion plus or minus, expects NII excluding markets of about $48 billion, and still expects noninterest expense of approximately $55.7 billion; it also said third-quarter NIM should see modest compression before stabilizing in the fourth quarter.

Charles Scharf framed the quarter as evidence that Wells Fargo’s strategy is working, emphasizing broad-based growth, better operating discipline, and more balanced revenue mix. He said the firm is investing in branches, advisers, bankers, AI, cyber, and product development while still holding headcount down and improving returns. His tone was confident but measured: he repeatedly noted that growth can be risky and said the bank is intentionally choosing longer-term earnings power over near-term margin maximization.

Michael Santomassimo highlighted broad-based operating strength: earnings up 17% to $4.1 billion, EPS up 25% to $2, NII up 5%, and noninterest income up 13%. He pointed to modest NIM compression in the quarter, driven mainly by higher interest-bearing deposits and markets balance-sheet growth, and said third-quarter NIM should see a similar modest decline before stabilizing in the fourth quarter. On capital, he cited CET1 of 10.3%, $3 billion of buybacks in the quarter, and continued capacity to repurchase shares; on outlook, he reiterated 2026 NII of $50 billion plus or minus and noninterest expense of about $55.7 billion.

Analysts focused heavily on the NIM outlook, asking whether Wells Fargo’s markets balance-sheet growth and deposit mix could keep pressure on margins. Management said the compression is largely self-inflicted from deliberate growth in interest-bearing deposits and financing activity, and that the bank can slow or reverse some of that activity if needed. Questions also covered expense discipline, loan growth drivers, card acquisition economics, deposit pricing, and capital returns; management said efficiency opportunities remain substantial, loan growth is being driven mainly by new business rather than utilization, card vintages are outperforming early assumptions, deposit pricing competition has not worsened, and buybacks will continue depending on capital needs and regulatory finalization.