Higher gas prices are cutting into consumer spending — and Wells Fargo’s revenue

Consumers are spending 25–30% more on gas than before the Middle East conflict began in late February. That squeeze is showing up where it matters most to Wells Fargo: its bottom line. The bank earns over 40% of its revenue from consumer banking, and with higher energy costs eating into household budgets, there’s less money available for borrowing, spending, and generating interest income. Wells Fargo's Q1 revenue missed Wall Street expectations at $21.79 billion. Net interest income, a key metric for Wells Fargo, fell short of forecasts. The bank reported earnings of $1.56 per share, below the analyst estimate of $1.60.