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1. Company Snapshot

1.a. Company Description

Wells Fargo & Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services in the United States and internationally.It operates through four segments: Consumer Banking and Lending; Commercial Banking; Corporate and Investment Banking; and Wealth and Investment Management.The Consumer Banking and Lending segment offers diversified financial products and services for consumers and small businesses.


Its financial products and services include checking and savings accounts, and credit and debit cards, as well as home, auto, personal, and small business lending services.The Commercial Banking segment provides financial solutions to private, family owned, and certain public companies.Its products and services include banking and credit products across various industry sectors and municipalities, secured lending and lease products, and treasury management services.


The Corporate and Investment Banking segment offers a suite of capital markets, banking, and financial products and services to corporate, commercial real estate, government, and institutional clients.Its products and services comprise corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity, and fixed income solutions, as well as sales, trading, and research capabilities services.The Wealth and Investment Management segment provides personalized wealth management, brokerage, financial planning, lending, private banking, and trust and fiduciary products and services to affluent, high-net worth, and ultra-high-net worth clients.


It also operates through financial advisors.Wells Fargo & Company was founded in 1852 and is headquartered in San Francisco, California.

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1.b. Last Insights on WFC

Wells Fargo's recent performance was driven by strong Q3 2025 earnings, with net income rising to $5.6 billion and EPS up 17%. The removal of asset caps and resilient credit quality fueled growth, with net interest income up 2% and noninterest income growing 9.3%. Management targets higher ROTCE (17-18%) and plans to reduce CET1 ratio, enabling continued capital returns via dividends and share buybacks. A $5.5 billion quarterly buyback and solid balance sheet with $77B returns over five years drive rerating potential.

1.c. Company Highlights

2. Wells Fargo's 2025 Earnings: A Strong Performance with Growth Ahead

Wells Fargo reported a net income of $21.3 billion in 2025, with diluted earnings per share growing 17% from a year ago to $6.45, beating the previous year's figure. In Q4 2025, net income was $5.4 billion, up 6% from a year ago, and diluted earnings per share was $1.62, slightly below the estimated $1.66. The company's net interest income increased $381 million or 3% from the third quarter, driven by strong loan growth, with period-end loans growing 5% from the third quarter and from a year ago.

Publication Date: Jan -15

📋 Highlights

Revenue Growth Across Businesses

Consumer Banking and Lending revenue increased, driven by a 9% growth in Consumer Small and Business Banking revenue, 7% growth in credit card revenue, and 7% growth in auto revenue. Wealth and Investment Management revenue also increased 10% from a year ago. Commercial Banking revenue was down 3% from a year ago, while Corporate and Investment Banking revenue was mixed, with a 4% decline in banking revenue but a 7% growth in markets revenue.

Expense Management and Efficiency Initiatives

The company has made significant expense cuts, including $15 billion in reductions, and increased its regulatory expenses by $2 billion to $2.5 billion annually. They plan to continue investing in growth initiatives while maintaining a focus on profitability. As Charlie Scharf mentioned, they have made significant progress in cutting expenses and positioning themselves for growth.

Outlook and Guidance

The company expects net interest income of around $50 billion in 2026, with net interest income excluding markets expected to be approximately $48 billion. They assume 2-3 rate cuts by the Federal Reserve in 2026 and expect average loans to grow mid-single digits from fourth quarter 2025 to fourth quarter 2026. Noninterest expense is expected to be around $55.7 billion in 2026, with approximately $2.4 billion of gross expense reductions due to efficiency initiatives.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) of 1.59 and a Dividend Yield of 1.9%, Wells Fargo's valuation appears reasonable. Analysts estimate next year's revenue growth at 4.5%. The company's ROTCE target of 17-18% is ambitious, but the current ROTCE of 15% is a good starting point. As the company continues to focus on efficiency initiatives and growth, its valuation metrics will be closely watched.

3. NewsRoom

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Wells Fargo & Company (WFC) Presents at UBS Financial Services Conference 2026 Transcript

Feb -10

Source: seekingalpha.com

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Wealthfront Advisers LLC Buys 13,515 Shares of Wells Fargo & Company $WFC

Feb -10

Source: defenseworld.net

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Wells Fargo & Company (NYSE:WFC) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Feb -09

Source: defenseworld.net

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IEI vs. IGIB: How Does Government Bond Exposure Compare Against Corporate Bonds?

Feb -08

Source:

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Wells Fargo & Company $WFC Position Increased by Canada Post Corp Registered Pension Plan

Feb -07

Source: defenseworld.net

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Wells Fargo & Company $WFC Shares Sold by State of Michigan Retirement System

Feb -07

Source: defenseworld.net

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Mayo Says This Is a 'New Era for Bank Consolidation' (Correction)

Feb -06

Source: youtube.com

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Big US banks boost Washington lobbying muscle as policy fights heat up

Feb -05

Source: reuters.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.25%)

6. Segments

Consumer Banking and Lending

Expected Growth: 7.4%

Wells Fargo's personal and small business customers segment will benefit from increasing demand for digital banking services, growth in online lending, and an expanding customer base, driving segment growth.

Corporate and Investment Banking

Expected Growth: 6.2%

Wells Fargo’s corporate banking services are expected to grow driven by increasing demand for digital payment solutions, expansion into new markets and growing need for risk management services among corporate clients.

Commercial Banking

Expected Growth: 8.5%

Increasing adoption of digital payment solutions, growing need for cash management services, and expansion of Wells Fargo’s commercial banking services in various industries, such as healthcare and technology.

Wealth and Investment Management

Expected Growth: 6.9%

Wealth and Investment Management at Wells Fargo is driven by increasing demand for wealth management services, growth in assets under management, and expanding presence in the private wealth management space

Corporate

Expected Growth: 7.4%

Wells Fargo’s corporate segment is driven by increasing adoption of digital banking, growth in commercial lending, and expansion of its investment banking business, supported by a strong brand reputation and a large customer base.

Reconciling Items

Expected Growth: 4.5%

Wells Fargo’s customer account reconciliation growth is driven by increasing adoption of digital banking services, rising demand for efficient account management, and the company’s strategic investments in technology and innovation.

7. Detailed Products

Consumer Banking

Provides checking and savings accounts, credit cards, personal loans, and mortgages to individual consumers.

Corporate Banking

Offers cash management, treasury management, and lending services to large corporations and institutions.

Commercial Banking

Provides financial solutions, including lending, treasury management, and risk management to small and medium-sized businesses.

Wealth and Investment Management

Offers investment products, brokerage services, and wealth management advice to individuals and institutions.

Mortgage Banking

Originates, sells, and services residential and commercial mortgages.

Home Lending

Provides mortgage loans, home equity loans, and home equity lines of credit to individual consumers.

Credit Cards

Issues credit cards to consumers and small businesses, offering rewards, cashback, and other benefits.

Auto Finance

Provides financing for new and used vehicles, as well as leasing options.

Student Lending

Offers private student loans and consolidation loans to students and parents.

Insurance

Provides insurance products, including life insurance, disability insurance, and long-term care insurance.

8. Wells Fargo & Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Wells Fargo & Company faces moderate threat from substitutes due to the presence of digital payment systems and fintech companies, but the switching costs for customers are relatively high.

Bargaining Power Of Customers

Wells Fargo & Company has a large customer base, and individual customers have limited bargaining power, reducing the overall bargaining power of customers.

Bargaining Power Of Suppliers

Wells Fargo & Company has a diverse supplier base, and no single supplier has significant bargaining power, reducing the overall bargaining power of suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and capital requirements, making it difficult for new entrants to enter the market.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.16%
Debt Cost 9.82%
Equity Weight 45.84%
Equity Cost 9.82%
WACC 9.82%
Leverage 118.16%

11. Quality Control: Wells Fargo & Company passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 6.1/10

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Quality: 5.7

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Volatility: 8.0

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A-Score: 5.7/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

91.92$

Current Price

91.92$

Potential

-0.00%

Expected Cash-Flows