15-07-2025
Wells Fargo 2Q Net Interest Income Misses Estimates
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You have Wells Fargo with a miss and a staying in line when it comes to net interest income. So you do have a member. JPMorgan also slightly missed on net interest income for the quarter. It's the outlook. Now, how much more juice can you squeeze out of the consumer? I had mentioned costs were also going to be a big focus this earnings season, I would say for Wells Fargo. Interesting to see credit quality is also really good. This is a really good news for both JPMorgan and Wells Fargo coming in better than expectations. However, non-interest expense, this is the expenses you have control over coming in a little bit higher than expected. The setup here was that Wells Fargo was already trading at a richer price to book ratio than you had at Bank of America, for example. There's a lot of promise in the stock with the asset cap lifting. So now for Charlie Scharf, it's a show me the money story. They did miss on investment banking as well. These are business lines that they want to grow over at Wells Fargo now that that asset cap is lifted. So high bar now, not everyone can be JPMorgan. They came in at more than a 20% return on tangible common equity. No one thought that they would get that this quarter. So can the rest of the banks keep pace?
