Wells Fargo & Company, a leading financial services firm based in the U.S., reported its fourth-quarter earnings for 2024, signaling a notable performance amid ongoing market challenges. The bank’s net income rose to $5.1 billion, or $1.43 per diluted share, compared to $3.4 billion, or $0.86 per share, in the same quarter last year, marking a 47% increase. For the full year, Wells Fargo’s net income totaled $19.7 billion, translating to $5.37 per diluted share.

Wells Fargo’s financial stability is underscored by a solid return on equity (ROE) of 11.7% for the fourth quarter, which remained unchanged from the previous quarter but significantly improved from 7.6% a year earlier. The company’s return on average tangible common equity (ROTCE) was reported at 13.9%, up from 9.0% in the prior year.

Total revenue for the fourth quarter reached $20.4 billion, slightly declining from $20.5 billion a year ago. This includes a net interest income of $11.8 billion, down 7% year over year, attributed to a decrease in loan balances and changes in deposit mix. However, noninterest income increased by 11% to $8.5 billion, benefiting from higher asset-based fees and increased investment banking activities.

Wells Fargo’s total noninterest expense for the quarter was $13.9 billion, down 12% from $15.8 billion in the same period last year. This reduction was largely due to lower Federal Deposit Insurance Corporation (FDIC) assessments from the previous year’s special assessment.

The bank’s provision for credit losses stood at $1.1 billion for the fourth quarter, which represents a decrease compared to $1.3 billion in the same quarter last year. Total net charge-offs increased marginally to $1.2 billion, reflecting a charge-off rate of 0.53% of average loans, an increase from 0.47% in the prior quarter.

Average loans declined to $906.4 billion, down 3% year over year, primarily due to decreases in residential mortgage and commercial real estate loans. Conversely, average deposits rose by 1% to $1.4 trillion, with significant growth in the commercial banking segment.

Lastly, Wells Fargo’s Common Equity Tier 1 (CET1) capital ratio was reported at 11.1% at year-end, down slightly from 11.4% a year ago, while its liquidity coverage ratio (LCR) remained robust at 125%. The total loss-absorbing capacity (TLAC) ratio improved to 24.8%.

Overall, Wells Fargo’s fourth-quarter performance reflects a combination of revenue challenges within net interest income and ongoing improvements in noninterest income, expense control, and credit loss provisions, contributing to a stable financial footing entering 2025.