Wells Fargo Third-Quarter Profit Rises 9% — Update

By Gina Heeb

Wells Fargo said its profit increased 9% from a year earlier in the third quarter.

Net income at the bank was $5.59 billion. That amounted to $1.66 a share, above analyst estimates of $1.55. Revenue was 5% higher at $21.44 billion.

It was the first full quarter Wells was free from the asset cap that the Federal Reserve put in place in 2018 as a punishment for its fake-account scandal. The Fed lifted the asset cap in early June, shortly before the second quarter ended.

Wells Fargo raised its target for a key measure of profitability called return on tangible common equity to between 17% and 18%, as the bank pursues growth opportunities and is free to cut costs and use capital more efficiently. That is compared with a previous target of 15%.

Chief Executive Charlie Scharf said credit performance was strong and that clients continued to spend on debit and credit cards.

"While some economic uncertainty remains, the U.S. economy has been resilient," he said.

Noninterest income rose 9%, helped by jumps in investment banking and card fees. Net interest income--which reflects the difference between what banks charge on loans and pay out on deposits--was up 2%.

Write to Gina Heeb at gina.heeb@wsj.com

(END) Dow Jones Newswires

October 14, 2025 08:04 ET (12:04 GMT)