Wells Fargo & Company (NYSE: WFC) is a major American financial services company with approximately $1.9 trillion in assets. The company offers a wide range of banking, investment, and mortgage services through its various operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management.

In its fourth quarter of 2024, Wells Fargo reported a net income of $5.1 billion, or $1.43 per diluted common share, compared to $3.45 billion, or $0.86 per share, in the same quarter of 2023. The reported earnings were bolstered by a crucial $863 million gain in discrete tax benefits, largely offset by $647 million in severance expenses and $448 million in net losses on the sale of debt securities due to portfolio repositioning actions.

The bank’s total revenue for the fourth quarter reached $20.4 billion, a slight decrease compared to the $20.5 billion reported a year earlier. Net interest income dropped by 7% year-over-year to $11.8 billion and slightly increased 1% from the third quarter, thanks to higher customer deposit balances reducing the reliance on higher-cost funding. Meanwhile, noninterest income rose by 11% from the previous year to $8.5 billion, driven by growth across various fee income categories and improved venture capital results.

Average loans declined by 3% from the previous year to $906.4 billion, with notable decreases in home lending and personal lending offset by growth in credit card balances and commercial loans. Average deposits increased to $1.35 trillion, up from $1.34 trillion in the same quarter of the prior year, reflecting a stable deposit gathering strategy. The average cost of deposits was 1.73% in the fourth quarter, a minor drop from the preceding quarter’s cost.

Noninterest expenses decreased by 12% year-over-year to $13.9 billion, benefiting from lower Federal Deposit Insurance Corporation (FDIC) assessments and severance costs. The efficiency ratio improved to 68%, down from 77% in the prior year’s fourth quarter, illustrating enhanced operational efficiencies.

The bank’s Common Equity Tier 1 (CET1) ratio stood at 11.1%, maintaining a strong capital position. For 2025, Wells Fargo forecasts net interest income to increase by 1% to 3% compared to 2024, projecting a modest loan growth primarily in commercial segments and a stable deposit growth across its businesses.

Overall, Wells Fargo demonstrated solid financial performance in the fourth quarter, indicating a stable condition with focused efforts on cost management and improving the bank’s earnings profile.