Wells Fargo (NYSE: $WFC) posted strong earnings for the first quarter of 2025. The bank reported GAAP EPS of $1.39, up from $1.20 a year ago. This beat the consensus estimate of $1.34. Net income rose 6% year over year to $4.89 billion.
However, total revenue fell short of expectations. The bank reported $20.15 billion, down 3% from $20.86 billion last year. Analysts had expected $20.75 billion.
Net interest income (NII) declined 6% year over year to $11.49 billion, below the $11.82 billion expected. Wells Fargo said this drop came from lower rates and loan balances, partly offset by higher deposit balances and lower deposit pricing.
Non-interest income remained stable at $8.65 billion. This included gains from asset-based fees and investment banking but was offset by lower trading results and venture capital returns.
Corporate and Investment Banking saw a 2% increase in revenue to $5.06 billion. Banking revenues dropped 4% to $1.77 billion due to lower rates, but this was partially offset by a rise in debt capital market activity.
Investment banking fees rose 24%, driven by higher debt issuance. Investment advisory and brokerage commissions increased 7%, supported by strong market valuations.
Average loans dropped 2% year over year to $908.2 billion, mainly due to declines in real estate and mortgages. On the other hand, average deposits rose $12.9 billion, up 1% annually, boosted by customer inflows. However, deposits were down $2.3 billion from the previous quarter due to fewer wholesale and corporate CDs.
CEO Charlie Scharf noted ongoing uncertainty and said the bank expects a slower economy in 2025. He added that trade tensions could affect growth but remained hopeful for a positive resolution.
Wells Fargo reaffirmed its 2025 guidance. It expects net interest income to grow 1–3% over 2024’s total of $47.7 billion. The bank also maintained its forecast for noninterest expenses at ~$54.2 billion.
As of the last check on Friday morning, WFC stock traded at $60.70, down 3.82%. Earlier in premarket trading, it had gained 0.67%, reaching $63.53.
Technical analysis
Its 3-day chart shows an ascending trendline that has been in play since October 2023. This trendline has supported recent rallies, with the price now testing it as the second bounce.
WFC is currently trading at a support level ranging at the $60–$63 zone. This zone acted as strong resistance in 2022 and in 2024 and is now being tested as support.
If this area holds, the price could bounce and retest $70 and possibly move toward the $81.50 previous high recorded in Feb 2025. A break below the current trendline and the horizontal support could signal a deeper drop toward the next support around $48.
The RSI is currently at 33.89, indicating the stock is nearing oversold levels. This reflects the recent bearish momentum. The volume on recent bearish candles is elevated, showing strong selling pressure. However, the price is still above the 200-day moving average at $53.19, which may act as longer-term support.
The 50-day and 100-day moving averages sit at $69.21 and $63.25, respectively. The price is below both, confirming short-term bearish momentum.
Price needs to$60-$63 zone to signal a possible reversal. Failure to do so could lead to a continuation of the downtrend. In conclusion, the ascending trendline, key horizontal level and RSI readings will be crucial in determining WFC’s next move.If the current support holds, it could goive a recovery confirmation towards higher price levels.
Click Here For Updates on WFC – It’s FREE to Sign Up for Text Message Notifications!
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.
