What factors influenced WFC's earnings surprises in 2024?

Wells Fargo's (WFC) 2024 earnings report showcased robust performance, with key factors contributing to the bank's success:

1. **Strategic Investments and Diversified Revenue Streams**: Wells Fargo's strategic investments and diversified revenue streams have significantly contributed to its solid performance. The bank's focus on core consumer and corporate client businesses, alongside investments in technology and risk management, have bolstered its competitive position.
2. **Effective Cost Management**: The company's ability to manage costs effectively, as evidenced by a 12% decrease in noninterest expenses year-over-year, has been a key factor in its financial success. This includes lower FDIC assessments and efficiency initiatives.
3. **Fee-Based Revenue Growth**: Wells Fargo has experienced robust fee-based revenue growth, which has helped offset a decline in net interest income. This growth is a result of improved results from investment banking and wealth management activities, higher investment banking fees, and increased asset-based fees in Wealth and Investment Management.
4. **Improvement in Capital Ratios**: The bank's capital ratios have shown improvement, with a return on tangible common equity of 13.9% and an increased dividend of 14%.
5. **Resilience in Consumer Banking**: Despite challenges in loan demand and commercial real estate, Wells Fargo's consumer banking segment has shown resilience, with over 2.4 million new credit card accounts opened in 2024 and a $17 billion increase in credit card spend.

In conclusion, Wells Fargo's earnings surprises in 2024 can be attributed to a combination of strategic investments, effective cost management, fee-based revenue growth, improvement in capital ratios, and resilience in consumer banking. These factors, coupled with a challenging economic environment, have enabled the bank to deliver strong financial performance.