What can investors expect from WFC's Q1 2025 forecast?

**Investors can expect Wells Fargo's Q1 2025 performance to show improvements in net interest income and fee income.** Here's a detailed analysis:

1. **Net Interest Income (NII) Recovery**: Wells Fargo anticipates a 1%-3% increase in NII compared to 2024, which is a positive indicator as NII decreased by 7% year-over-year in the fourth quarter of 2024. This recovery is due to factors such as a slight improvement in deposit mix and lower expense growth.
2. **Fee Income Growth**: The bank's fee income has shown growth, with a 11% year-over-year increase in the fourth quarter. This trend is expected to continue, driven by strong performance in asset management, trading, and investment banking fees.
3. **Expense Control**: Wells Fargo plans to maintain expense growth around $54.2 billion in 2025, which is slightly lower than the current year's expenses. The bank aims to achieve efficiency savings, lower operating losses, and reduce severance expenses.
4. **Return on Equity (ROE) Improvement**: Wells Fargo's ROE ratio improved to 11.70% in the fourth quarter of 2024, up from 7.6% in the same period of the previous year. This trend is expected to continue, supporting the bank's goal of achieving a sustainable ROE of 15%.
5. **Asset Quality**: The bank's asset quality is expected to stabilize, with average loans showing a slight increase in the first quarter of 2025.

Overall, Wells Fargo's Q1 2025 forecast indicates a strong performance in fee income and a recovering NII, contributing to improved profitability and stability.