Wells Fargo Posts Q1 2025 Net Income of $4.89 Billion, Beating Estimates Despite Fed Asset Cap

Wells Fargo reported net income of $4.89 billion for the first quarter of 2025, with earnings per share of $1.39, above analysts' expectations. The results were published on 11 April, while the bank continued to operate under the Federal Reserve's consent order that imposes a ceiling on total asset growth.

Net interest income came in at $11.5 billion for the quarter, while non-interest income contributed $8.7 billion.

CAPITAL AND RETURNS

The bank's Common Equity Tier 1 ratio stood at 11.1% at the end of the first quarter. Return on equity reached 11.5%, and return on tangible common equity was 13.6%.

The Federal Reserve's asset cap was imposed as part of a 2018 consent order related to the bank's historical retail sales practices. The restriction prevents the bank from growing its balance sheet beyond a set threshold.

NET INTEREST INCOME AND CONSENT ORDERS

Wells Fargo's net interest income of $11.5 billion was down 6% from a year earlier, reflecting lower rates on floating-rate assets, deposit mix and pricing changes and lower loan balances.

The bank's management said in the earnings release it was confident of closing its remaining open consent orders, after five were closed during the quarter.