Wells Fargo’s $1 trillion loan portfolio expansion signals new growth after asset cap lift

Wells Fargo’s loan portfolio has surpassed $1 trillion in the first quarter of 2026, marking the first full quarter of growth since the Federal Reserve lifted its $1.95 trillion asset cap at the end of 2025. The milestone signals a structural shift in the bank’s capacity to expand, now unshackled from restrictions imposed after the massive phony-accounts scandal. Deposits rose 6.8% to $1.45 trillion over the same period, fueling the lending surge.

Consumer banking and lending revenue reached $10 billion, a 7% increase from a year earlier, driven by a more than doubling of auto loan originations to $9.7 billion. Credit and debit card purchase volumes also posted solid gains. Meanwhile, markets revenue—covering equities, fixed income, currencies, and commodities—jumped 19% to $2.17 billion. Company-wide revenue hit $21.4 billion, up 6% from the first quarter of 2025.

Despite higher oil prices affecting household budgets, consumer spending remains resilient, Chief Financial Officer Mike Santomassimo said, describing the economy as “quite strong.” Net charge-offs held steady at 0.45% of average total loans, while nonaccrual loans dipped to 0.83% from 0.87% a year ago. The bank maintains confidence in its risk exposure, including $210.2 billion in loans to non-depository financial institutions.

Analysts are revising their outlook: Jefferies recently initiated coverage with a “buy” rating and $100 price target, reflecting expectations of sustained balance sheet expansion. Wells Fargo is entering a period of meaningful balance sheet growth following the removal of the asset cap.