Wells Fargo profit rises as trading gains and higher interest income boost results

Wells Fargo posted a stronger first quarter as higher interest income and a burst of trading activity helped lift profit to $5.25 billion, from $4.89 billion a year earlier. The result showed how the bank is still benefiting from a higher-for-longer rate environment, even as that tailwind is likely to fade if borrowing costs eventually ease.

Revenue rose 6% to $21.446 billion, while net interest income climbed 5% to $12.1 billion. That spread is the core measure of how much a bank earns from lending after paying depositors, and Wells Fargo’s gains suggest it is still earning more on loans than it is paying out on deposits. Average loans rose to $996.0 billion and average deposits reached $1.415 trillion, a sign that the balance sheet is still expanding in a disciplined way.

Trading also provided a meaningful boost. Markets revenue jumped 19% to $2.17 billion, helping noninterest income rise 8% to $9.35 billion. Volatile markets have been a source of opportunity for big banks with sizable trading operations, and Wells Fargo’s results showed that turbulence in financial markets can still translate into higher fees and profits even when the broader outlook is less predictable.

The bank’s credit picture remained stable. Net loan charge-offs held at 45 basis points, while the provision for credit losses increased to $1.135 billion from $932 million a year earlier. That combination suggests Wells Fargo saw enough risk to keep building reserves, but not enough deterioration to point to broad stress in consumer or business credit.

Profitability improved as well. Diluted earnings per share rose to $1.60 from $1.39, return on equity was 12.2%, and return on tangible common equity reached 14.5%. Wells Fargo also repurchased 46.3 million shares, or $4.0 billion worth, and reported a $135 million discrete tax benefit tied to the resolution of prior-period matters.

The quarter carried extra strategic weight because Wells Fargo is no longer under the Federal Reserve’s long-standing asset growth restriction, which the central bank removed on June 3, 2025 after the lender met the required conditions. Management is now looking to push harder in credit cards and auto lending, areas that could help turn a cleaner regulatory slate into organic loan growth. Charlie Scharf said consumers were still spending despite higher gasoline prices and described the gap between volatile markets and a resilient economy as a disconnect. For investors, the key question is whether this quarter marks a durable lift in earnings or the crest of a rate-driven earnings wave that will eventually recede.