Wells Fargo reported second-quarter 2026 net income of $6.407 billion, or $2.00 a share, up 17% from $5.494 billion and $1.60 a year earlier, as higher net interest and noninterest income lifted the fourth-largest US bank's profitability. Group revenue of $22.6 billion was 9% ahead of the prior year, the San Francisco-based lender said in its earnings release. Chief executive Charlie Scharf said diluted earnings per share rose 25% from a year earlier and return on tangible common equity increased to 17.7%.
Net interest income of $12.3 billion rose 5% year-on-year, reflecting lower deposit costs and higher loan and investment securities balances, partly offset by the impact of lower interest rates on floating-rate assets. Noninterest income rose 13%, with the quarter including strong performance from venture capital investments, higher investment advisory fees on higher market valuations and higher investment banking fees.
BUSINESS MIX SHOWS BROAD LIFT
Scharf said continued expense discipline drove positive operating leverage, with total expenses up 2% from a year earlier.
Consumer Banking and Lending revenue grew 6%, Commercial Banking revenue rose 6% and Corporate and Investment Banking revenue increased 16%. Wealth and Investment Management revenue increased 13%. Scharf said consumer and commercial credit quality remained strong across all portfolios, with net loan charge-offs down 10 basis points from a year earlier, and the allowance for credit losses rose only modestly.
CAPITAL AND REGULATORY UPDATE
The bank reported a total loss-absorbing capacity ratio of 22.8% and a CET1 ratio of 10.3%. It repurchased 37.4 million shares, or $3.0 billion, of common stock in the quarter and about $7 billion in the first half, and said it expects to raise its third-quarter common dividend by 11% to $0.50 per share, subject to board approval.
Scharf said that after years of not being on a level playing field with competitors because it could not grow its balance sheet, the bank is now carefully deploying capital to grow. Scharf said the bank's strong capital generation allows it to grow while continuing to return capital to shareholders.
The second-quarter release places Wells Fargo alongside JPMorgan Chase, Citigroup and Bank of America in the 14 July 2026 reporting slot for the largest US lenders.