Wells Fargo Shows Profitability Uplift

12 days ago

Valerie Titel

"A bit more positivity around Wells Fargo. Shares are up 1.7%. They boosted a key profitability metric after the Fed's asset cap was finally removed after nearly seven years, raising their return on tangible common equity to 17 to 18% versus previous guidance of 15%. Although net interest income came in slightly light, they confirmed full-year guidance on net interest income for 2025, with provisions for loan losses lighter than expected and strong dealmaking revenue."

The commentary highlights improved profitability measures at Wells Fargo, including an upward revision in ROCE and lighter-than-expected loan loss provisions, painting a positive near-term outlook despite a slight miss in net interest income.

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