Wells Fargo reported third quarter 2026 earnings that surpassed analyst expectations on the bottom line, despite a miss on revenue and net interest income. The results were characterized by significant balance sheet expansion following the removal of regulatory constraints, with average loans growing 11% year-over-year.
Key Highlights
- Average loans reached $1.03 trillion, an 11% year-over-year increase driven by double-digit growth in Commercial Banking and Corporate and Investment Banking.
- Net interest income of $12.52 billion fell short of the $12.63 billion estimate, pressured by higher interest-bearing deposit costs and lower rates on floating-rate assets.
- Noninterest expense decreased 1% to $13.74 billion, aided by an 8% reduction in headcount and successful efficiency initiatives.
- Wealth and Investment Management revenue grew 12% to $4.1 billion, benefiting from higher market valuations and investment advisory fees.