Wells Fargo sees turning point after asset cap lifted, bank says in earnings call
Wells Fargo CEO Charlie Scharf sees 2025 as a turning point for the bank, which reported Wednesday a renewed sense of momentum after years of regulatory constraints.
Regulators lifted the long‑standing $1.95 trillion asset cap in June that was tied to a widespread fake sales scandal and had limited the bank’s ability to grow. Several oversight orders also were resolved last year.
These changes, combined with stronger performance in consumer and commercial banking, put the company “in a position of strength” heading into the new year, Scharf said during the fourth-quarter earnings call Wednesday.
Despite a 4% year-over-year increase, Wells Fargo’s net interest income of $12.3 billion missed the $12.5 billion analyst expectations sending Wells Fargo’s stock sliding Wednesday; it was down by 5% by 3 p.m.
“We are excited to now compete on a level playing field and are able to dedicate even more resources to growth with the ability to grow our balance sheet,” Scharf said.
Wells Fargo financial growth highlights
The bank reported $5.4 billion in profit for the fourth quarter, an increase of nearly 6% from the same period last year. Wells Fargo also returned $23 billion to shareholders last year through stock buybacks and higher dividends.
Overall revenue also rose, propelled by several business lines:
- Credit card surge: The credit card business saw strong growth, with nearly 3 million new credit card accounts opened last year, up 21% from the prior year. Credit cards saw customers using their cards more. Credit card revenue rose 7% compared to 2024, driven by higher balances and higher card fees. Credit card balances were up 6% from a year ago, Scharf said.
- Lending rebound: Auto lending rebounded with stronger origination volumes and a 19% growth in loan balances. Commercial lending also grew. The bank benefitted from becoming the preferred financing provider for Volkswagen and Audi brands in the U.S. The bank’s home lending business also was transformed and simplified, Scharf said, as Wells Fargo continues to reduce the size of the business.
- Wealth management: Clients investment balances increased, and the bank grew its number of licensed bankers and branch-based financial advisors by 12% over the year. Premier deposit and investment balances grew 14%.
- Deposit growth: In 2025, 50% of Wells Fargo’s consumer checking accounts were opened digitally, driving stronger net checking account growth compared to the previous year.
Wells Fargo industry headwinds and cost reduction
The bank is also monitoring potential political headwinds, including a call by President Donald Trump for a 10% credit card interest rate cap.
Such a mandate could have a “significant negative impact on credit availability” and hurt economic growth, Wells Fargo CFO Mike Santomassimo said during a call with reporters Wednesday. Scharf told analysts it’s still too early to comment about the possible cap.
Meanwhile, Wells Fargo has continued cutting costs in the name of efficiency.
The bank has trimmed about $15 billion in expenses over the past five years while investing heavily in technology. The cost cuts include a $612 million severance charge tied to job reductions, which has shrunk the employee base by about 24% from 275,000 to about 210,000 since Scharf joined the bank in 2019.
The bank’s largest employee base remains in Charlotte, with about 27,000 workers.
Wells Fargo’s outlook and goals
With the regulatory constraints removed, Wells Fargo is setting a higher profitability target and plans to invest more aggressively in its businesses. The focus is on long-term, sustained growth, Scharf said.
In the commercial bank, for instance, Wells Fargo has hired 185 bankers in the last two years, with over 60% of the bankers hired last year.
“We are starting to see early signs of success from these hires with higher new client acquisition as well as loan and deposit growth,” Scharf said. “The economy and our customers remain resilient, but we continue to closely monitor our portfolios for signs of weakness.”
This story was originally published January 14, 2026 at 2:56 PM with the headline "Wells Fargo sees turning point after asset cap lifted, bank says in earnings call."
