Yahoo Finance

• Net Income: $5.1 billion for the fourth quarter.

• Earnings Per Share (EPS): $1.43 per diluted common share.

• Revenue: Fee-based revenue growth up 15% from a year ago.

• Net Interest Income: Increased $146 million or 1% from the third quarter.

• Noninterest Income: Up 11% from a year ago.

• Noninterest Expense: Declined 12% from a year ago.

• Common Stock Dividend: Increased by 15% in 2024.

• Stock Repurchase: Approximately $20 billion of common stock repurchased, up 64% from a year ago.

• Average Loans: Declined throughout the year.

• Average Deposits: Increased from fourth quarter 2023.

• Credit Card Spend: Up over $17 billion from a year ago.

• Allowance for Credit Losses: Down $103 million from the third quarter.

• ROTCE: Improved to 13.4% in 2024.

• 2025 Net Interest Income Expectation: Approximately 1% to 3% higher than full year 2024.

• 2025 Noninterest Expense Expectation: Approximately $54.2 billion.

• Warning! GuruFocus has detected 8 Warning Signs with GS.

Release Date: January 15, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Wells Fargo & Co (NYSE:WFC) reported a solid performance in the fourth quarter, with net income of $5.1 billion and a 1% increase in net interest income from the previous quarter.

• The company returned $25 billion of capital to shareholders in 2024, including a 15% increase in common stock dividends and $20 billion in stock repurchases.

• Wells Fargo & Co (NYSE:WFC) achieved strong fee-based revenue growth, up 15% from the previous year, which helped offset a decline in net interest income.

• The company made significant progress in its risk and control work, with six consent orders terminated since 2019, including the OCC's sales practices consent order.

• Wells Fargo & Co (NYSE:WFC) saw growth in its credit card business, with over 2.4 million new accounts opened in 2024 and a $17 billion increase in credit card spend from the previous year.

Negative Points

• Average loans declined throughout the year, with growth in credit card balances offset by declines in other asset classes due to weak loan demand and credit tightening actions.

• Commercial real estate office fundamentals remain weak, with increased net loan charge-offs in this portfolio.

• The auto business experienced a 21% decrease in revenue from the previous year due to lower loan balances and loan spread compression.

• Noninterest expense declined 12% from a year ago, but this was primarily driven by a lower FDIC special assessment, indicating potential challenges in achieving further cost reductions.

• The company remains under an asset cap, which limits its ability to grow its balance sheet and fully capitalize on growth opportunities.