Key Moments
- Wells Fargo reported fourth-quarter net income of $5.36 billion, or $1.62 per share, up from $5.08 billion, or $1.43 per share, a year earlier.
- Net interest income increased 4% year over year to $12.33 billion as the bank benefited from higher-yielding assets.
- Regulators lifted a $1.95 trillion asset cap in June, helping total assets exceed $2 trillion last year for the first time.
Fourth-Quarter Earnings Performance
Wells Fargo’s profit rose in the fourth quarter, supported by increased earnings from interest payments.
The fourth-largest U.S. lender reported net income of $5.36 billion, or $1.62 per share, for the three months ended December 31. In the same period a year earlier, net income was $5.08 billion, or $1.43 per share.
| Period | Net Income | Earnings Per Share |
|---|---|---|
| Latest fourth quarter (ended December 31) | $5.36 billion | $1.62 |
| Previous-year fourth quarter | $5.08 billion | $1.43 |
Regulatory Shift and Balance Sheet Growth
Regulators removed a $1.95 trillion asset cap in June, ending a penalty tied to Wells Fargo’s fake-accounts scandal. The removal of this restriction allowed the bank to expand its balance sheet, pushing total assets past the $2 trillion mark last year for the first time.
Net Interest Income and Interest Rate Environment
U.S. banks have benefited as fixed-rate assets and securities portfolios have been repriced over time into higher-yielding instruments. Within this backdrop, Wells Fargo’s net interest income – the spread between what it earns on loans and what it pays on deposits – increased 4% year over year to $12.33 billion in the quarter.
| Metric | Reported | Expected Range |
|---|---|---|
| Net interest income (quarter) | $12.33 billion | $12.4 billion to $12.5 billion |
The bank had anticipated quarterly net interest income to fall between $12.4 billion and $12.5 billion, slightly above the level it ultimately reported.
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