Wells Fatgo 2Q25 reported net interest income decreased 2%, driven by the impact of lower interest rates on floating rate assets and changes in deposit mix, partially offset by lower market funding and reduced deposit pricing. Noninterest income increased 4%, reflecting the gain from the merchant services joint venture acquisition, higher asset-based fees in Wealth and Investment Management due to improved market valuations, and an increase in investment banking fees, partially offset by lower net gains from trading in the Markets business
Consumer Banking and Lending (CBL)- Total revenue was up 2% year-over-year and up 4% from the first quarter of 2025. Consumer and Small Business Banking (CSBB) rose 3% year-over-year, driven by higher net interest income, and increased 5% from 1Q25 due to higher net interest income and seasonally higher debit card interchange income. Home Lending was down 5% from 1Q25, primarily reflecting lower mortgage servicing income resulting from portfolio run-off and sales. Credit Card revenue increased 9% year-over-year on higher loan balances. Auto declined 15% year-over-year due to lower loan balances and loan spread compression. Personal Lending was down 9% year-over-year, driven by lower loan balances. Mobile active customers- 32.1 million in 2Q25 up from 31.8 million in 1Q25
Commercial Banking (CB)- Total revenue was down 6% year-over-year but up modestly from the first quarter of 2025. Net interest income declined 13% year-over-year due to the impact of lower interest rates, partially offset by lower deposit pricing and higher deposit and loan balances. Noninterest income rose 13% year-over-year, driven by higher revenue from tax credit investments and increased treasury management fees. Noninterest expense increased 1% year-over-year as higher operating costs were partially offset by lower personnel expenses, reflecting the impact of efficiency initiatives; expenses were down 9% from 1Q25.
Chief Executive Officer Charlie Scharf commented, “Our second quarter results reflect the progress we are making to consistently produce stronger financial results with net income and diluted earnings per share up from both the first quarter and a year ago. Our efforts to increase fee-based income drove revenue growth and both net interest income and noninterest income grew from the first quarter. We are investing in our businesses but remain focused on expense management. While there continue to be risks as we look forward, activity levels have remained consistent and our strong credit performance continues to point to the strength of our commercial and consumer customers’ financial position.” Scharf continued, “The lifting of the asset cap in the second quarter marked a pivotal milestone in Wells Fargo’s ongoing transformation, along with the termination of thirteen consent orders since 2019, including seven this year alone. We are a far stronger company today because of the work we’ve done. This is a huge accomplishment, and I appreciate the focus and dedication that was required of everyone at Wells Fargo. We now have the opportunity to grow in ways we could not while the asset cap was in place and are able to move forward more aggressively to serve consumers, businesses, and communities to support U.S. economic growth.” He concluded, “As we have been investing to drive organic growth and improve the earnings capacity in each of our businesses, we have also been returning excess capital to shareholders. During the first half of this year, we repurchased over $6 billion of common stock and as previously announced, we expect to increase our third quarter common stock dividend by 12.5%, subject to approval by the Company’s Board of Directors at its regularly scheduled meeting later this month.”