Wells Fargo’s profit rose 6% in the first quarter, driven by robust performance in its wealth management business.
Shares of the San Francisco, California-based bank rose 1% in premarket trading after the bank also reiterated its annual interest income forecast. The stock has fallen 10% so far this year as of last close.
Investment advisory fees and brokerage commissions rose 7% to $3.17 billion in the quarter, driven by higher asset-based fees.
Banks entered 2025 with a bullish outlook, backed by a resilient economy, resurgent dealmaking and business-friendly pronouncements from the new administration.
The optimism unraveled over the last week as President Donald Trump’s fluctuating announcements on tariffs stoked concerns about inflation that could tip the U.S. into recession.
“We support the administration’s willingness to look at barriers to fair trade for the United States, though there are certainly risks associated with such significant actions,” said CEO Charlie Scharf in a statement.
“We expect continued volatility and uncertainty and are prepared for a slower economic environment in 2025, but the actual outcome will be dependent on the results and timing of the policy changes.”
Meanwhile, the bank’s net interest income - or the difference between what it earns on loans and pays out on deposits - fell 6% to $11.50 billion from a year earlier.
Wells Fargo still expects its annual interest income to rise 1% to 3% in 2025.
Executives have previously said interest income will be relatively stable in the first half of 2025, with more growth in the second half.
The fourth-largest U.S. lender’s net income rose to $4.89 billion, or $1.39 per share, it said on Friday. That compares with $4.62 billion, or $1.20 per share, a year earlier.
Regulatory progress
Wells Fargo is still operating under a $1.95 trillion asset cap that prevents the bank from growing until regulators deem it has fixed problems from a 2016 fake accounts scandal.
The asset cap has curtailed Wells Fargo’s ability to take in more deposits or expand businesses like investment banking and trading.
The bank has undergone a multi-year effort under Scharf’s leadership to fix failings in its governance and risk management.
Progress on the regulatory front has accelerated since the beginning of 2025, with five consent orders closed so far this year, compared with one in 2024.
The bank has closed 11 consent orders since Scharf took the helm in 2019 and still has three open that it is working to address.
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