Wells Fargo's earnings miss estimates as mortgage profits decline

"The San Francisco-based bank reported Wednesday that it spent $612 million on severance, reflecting the company's ongoing workforce reductions, which have occurred every quarter since late 2020. The company ended 2025 with about 205,200 employees. The reported $612 million in severance costs is down compared with $647 million a year earlier. Loans held on the bank's balance sheet increased to $955.8 billion in Q4 2025, up from $906.4 billion in the same period a year earlier, while average deposits grew to $1.38 trillion."

"Non-interest expenses declined 1% from a year earlier to $13.7 billion, which the bank said was driven by lower Federal Deposit Insurance Corporation (FDIC) assessment expense, lower operating losses, and the impact of efficiency initiatives. Provision for credit losses totaled $1.04 billion, down slightly from $1.1 billion a year ago. Wells Fargo's consumer banking and lending segment, which includes home loans, reported net income of $2.1 billion, up 33% from a year earlier, as revenue rose 7%."

Wells Fargo ended 2025 with about 205,200 employees after spending $612 million on severance, down from $647 million a year earlier. Loans on the balance sheet rose to $955.8 billion in Q4 2025 and average deposits grew to $1.38 trillion. Non-interest expenses declined 1% to $13.7 billion, driven by lower FDIC assessment expense, reduced operating losses, and efficiency initiatives. Provision for credit losses totaled $1.04 billion, slightly below the prior year. Consumer banking and lending net income rose to $2.1 billion, up 33%, while home lending net income fell 6% to $807 million. The bank expects roughly $50 billion in 2026 net interest income and about $55.7 billion in expenses.

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