Wells Fargo net interest income misses estimates as balance sheet expands
SV
Spencer Vaughan
Wells Fargo credit card · Apr 14, 2026
Source: DojiDoji Data Terminal
Wells Fargo shares fell 2.2% in premarket trading after the bank's net interest income missed analyst estimates. Net interest income reached $12.1 billion for the first quarter, falling short of the $12.3 billion forecast by LSEG analysts.
This miss occurs as the bank expands its balance sheet following the removal of a $1.95 trillion asset cap last year. Average loans grew to $996.0 billion, up from $908.2 billion a year ago, and average deposits rose to $1.415 trillion from $1.339 trillion.
Despite the interest income shortfall, Wells Fargo reported net income of $5.25 billion and diluted earnings per share of $1.60, beating estimates of $1.58 to $1.59. Total revenue of $21.45 billion missed the $21.77 billion estimate. The bottom-line beat was supported by noninterest income, which rose 8% year over year. This included a 19% increase in markets revenue, driven by market volatility in the first quarter.
Credit performance remained stable with net loan charge-offs at 45 basis points. However, the bank reported incremental signs of credit normalization. The consumer net charge-off rate increased to 0.78% annualized, and the commercial net charge-off rate rose to 0.24% annualized. The provision for credit losses increased to $1.14 billion from $932 million a year ago.
Capital levels shifted as the CET1 ratio fell to 10.3% from 11.1% a year ago, reflecting the bank's balance sheet growth and the repurchase of 46.3 million shares for $4.0 billion.
