Wells Fargo, in its latest report, announced a net income of $5.1 billion for the fourth quarter of 2024, reflecting an increase from the previous year's $3.4 billion. The earnings per diluted share also rose to $1.43 from $0.86 in the same period.
The company's total revenue for the quarter remained relatively stable at $20.4 billion, showing a marginal decrease from the previous year's $20.5 billion. However, noninterest expenses decreased significantly from $15.8 billion in the fourth quarter of 2023 to $13.9 billion in the same period of 2024.
Wells Fargo's average loans saw a slight decrease in the consumer banking and lending segment, dipping 1% from the previous year. However, average deposits showed positive growth across all segments, with commercial banking, corporate and investment banking, and wealth and investment management registering increases of 6%, 6%, and 10% respectively.
The company also highlighted its efforts in returning capital to shareholders, with the repurchase of 57.8 million shares totaling $4.0 billion in the fourth quarter of 2024. Additionally, Wells Fargo reported an 11% increase in diluted earnings per share from a year ago and a 15% growth in fee-based revenues.
CEO Charlie Scharf expressed pride in the progress made on the risk and control agenda and underlined the company's commitment to supporting communities impacted by natural disasters. He also emphasized the positive performance across various business segments, citing growth in the credit card business, net checking accounts, and mobile active customers.
In the consumer banking and lending segment, revenue decreased by 7%, while noninterest expense was down 2%. Similarly, in commercial banking, revenue decreased by 6% and noninterest expense decreased by 6% as well.
Corporate and investment banking saw a 3% decrease in revenue, driven by higher deposit costs and lower loan balances, partially offset by higher investment banking revenue. Wealth and investment management reported a 6% increase in noninterest income but experienced a 2% decrease in net interest income.
The company also provided a detailed breakdown of its capital and liquidity information, loan credit information, and operating segment performance, offering a comprehensive view of its financial health and business operations. The market has reacted to these announcements by moving the company's shares 7.0% to a price of $76.2. Check out the company's full 8-K submission here.
