Wells Fargo (WFC) Plunges 3.39% on Lowered Interest Income Guidance

On July 15, 2025, Wells Fargo's stock experienced a significant drop of 3.39% during pre-market trading, reflecting investor concerns and market reactions to recent developments.

Wells Fargo reported second-quarter earnings that exceeded expectations, but the bank lowered its net interest income guidance for 2025. This adjustment was attributed to a decline in market business interest income, which has raised doubts among analysts and investors about the bank's ability to meet its interest income targets.

Despite the challenges, Wells Fargo's CEO, Charlie Scharf, emphasized the stability of business activities and the strong credit performance of both corporate and individual clients. The bank's net income for the quarter ending June 30, 2025, was $54.9 billion, or $1.60 per share, compared to $49.1 billion, or $1.33 per share, in the same period last year.

Wells Fargo's investment banking fees increased by 9% to $6.96 billion, driven by higher consulting fees. The bank also noted that the removal of a $1.95 trillion asset cap by the Federal Reserve in June has provided new opportunities for growth, allowing Wells Fargo to expand its market share in commercial banking, corporate and investment banking, and trading services.

Wells Fargo's Chief Financial Officer highlighted that tariff measures have made clients more cautious in borrowing and investing, but the independence of the Federal Reserve is not a significant risk factor. The bank has resolved seven regulatory penalties this year and aims to address the remaining issues to further enhance its growth prospects.