Track market-moving stories before they get noisy

Both banks have fallen from their highs, both pay dividends, and both trade at the same forward earnings multiple.

America's four biggest banks all raised their dividends recently and their yields sit within a razor-thin range, but their balance sheets reveal a safety gap that separates a fortress payer from a bank that cut its payout as recently as…

All four of America’s largest banks have raised their quarterly payouts within the past six months: JPMorgan Chase (NYSE:JPM | JPM Price Prediction), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC) and Bank of America (NYSE:BAC). Even so, the group’s best yield is only 2.3%. Because the yields are so close, what separates these four for an income portfolio is strength. That means how much of each bank’s earnings the dividend uses, how much capital sits above the regulatory floor, and what each board did the last time a crisis hit. Every one of these banks has cut its dividend at least once in the modern era, so a bank’s track record matters as much as its current payout (we laid out the seven warning signs that a big yield is about to be cut in a free report here).

JPMorgan Chase: The Fortress Payer With the Thickest Capital Cushion JPMorgan yields 1.83% at a share price near $333. Among the four, the yield is the lowest, but the safety numbers are the strongest. The board just raised the quarterly dividend to $1.65 from $1.50, for an annualized forward payout of $6.60 per share.

Safety read: Trailing dividends of $6.15 against diluted EPS of $23.84 give a payout ratio of about 25.8%. JPMorgan ended the third quarter with a standardized CET1 ratio of 13.9%, the highest in this group. CEO Jamie Dimon estimated “probably $30 billion or something of excess capital”, and the bank holds $1.5 trillion of cash and marketable securities. The track record is mixed but solid. JPMorgan cut its quarterly payout from $0.38 to $0.05 in 2009. In 2020, though, it held the dividend at $0.90 per quarter and has raised the payout repeatedly since then.

Bull case: Dimon puts the dividend at the top of the capital list: “After you pay your dividend, which hopefully will be steady, we really like investing in organic growth.” Third-quarter ROTCE of 20% is above the bank’s through-cycle target of 17%. That gives income holders room for error, at a forward P/E of 14.

Risk: The trailing earnings include a one-time $4.6B Visa gain from the second quarter, so the payout ratio looks better than core earnings alone would justify. CFO Jeremy Barnum also warned that current conditions “are not typical by historical standards.”

Citigroup: Lowest Payout Ratio Behind a Turnaround That Is Starting to Pay Citigroup yields 2.03% at about $122.61. The quarterly dividend rose to $0.67 from $0.60, a 12% increase, for an annualized forward payout of $2.68.

Safety read: Trailing dividends of $2.47 against EPS of $10.26 put the payout ratio near 24.1%, the lowest of the four. CET1 stands at 12.8% against an 11.6% requirement, a margin of roughly 120 basis points. Citi also has more than $1 trillion of available liquidity. Its history carries a deep mark: the payout fell to $0.01 in 2009 and stayed there until 2015. During the pandemic, however, Citi held its dividend at $0.51 without cutting it, and it has since raised the payout four times.

Bull case: Profitability is finally improving. Third-quarter ROTCE reached 11.5%, and management is aiming for 14% to 15% over the longer term. Year-to-date buybacks of $13.3 billion show that capital is flowing back to shareholders. CFO Gonzalo Luchetti put the framework this way: “We hold capital for resilience and flexibility, and we deploy it for returns and to distribute it to shareholders.” The forward P/E is just 10.

Risk: Citi assumes its regulatory minimum will rise to 13.1% starting in January 2028, which is above today’s ratio. The bank also expects a roughly $9 billion CTA-related loss to run through earnings in early 2027 as it deconsolidates Banamex. Management expects that process to be slightly accretive to CET1, but buyback flexibility could tighten.

Wells Fargo: Strong Raises, but the Most Recent Dividend Cut Wells Fargo yields 2.26% at around $81.50. Its quarterly dividend rose to $0.50 from $0.45, for an annualized forward payout of $2.

Safety read: Trailing dividends of $1.85 against EPS of $7.12 produce a payout ratio of about 26.0%. CET1 is 10% against a minimum plus buffers of 8.5%, a margin of 150 basis points. CEO Charlie Scharf said the bank earns about $6 billion a quarter and that, after the dividend, this adds roughly 30 basis points to CET1 each quarter. The weak spot is the track record. Wells Fargo was the only one of the four to cut during the pandemic, slashing the quarterly payout from $0.51 to $0.10 in 2020. It has raised the dividend every year from 2022 through the latest increase, yet the payout is still $0.01 below where it stood before the cut.

Bull case: With the asset cap gone, the bank is growing again: average loans and deposits each rose 11% from a year ago. Third-quarter ROTCE of 16.3% is closing in on the 17% to 18% aim, and net charge-offs held at just 38 basis points of average loans. The forward P/E is 10.

Risk: Wells Fargo by design runs at the bottom of its 10% to 10.5% CET1 target range, and higher rates pulled the ratio down through AOCI losses last quarter. That leaves less spare capital if credit turns while the bank is expanding.

Bank of America: Highest Yield and Raises Every Year Since 2021 Bank of America offers the group’s top yield at 2.3%, with shares near $50.45. The quarterly dividend rose to $0.32 from $0.28, for an annualized forward payout of $1.28.

Safety read: Trailing dividends of $1.16 against EPS of $4.21 put the payout ratio near 27.6%. It is the highest of the four, but still conservative. CET1 is 10.9% against a 10% minimum. The bank returned $8.3 billion to shareholders last quarter, including $6 billion in buybacks. Funding is a real strength, with more than $2 trillion in deposits supporting $1.25 trillion of loans. In history, Bank of America cut its payout from $0.32 to $0.01 in 2009. It held at $0.18 through 2020 and has raised the dividend every year since 2021.

Bull case: CFO Alastair Borthwick described a simple order of priorities: “We know we have to support the regulatory minimum and the dividend, and then whatever is left, we’re going to return to shareholders.” Management expects net interest income to grow 8% or more next year, and card losses and delinquencies have improved for the sixth consecutive quarter. The forward P/E is 11.

Risk: Bank of America has the smallest regulatory margin of the four, at 90 basis points above the minimum, and management says buyback levels depend on final capital rules. Heavy loan growth could pressure that buffer further.

Ranking the Four: JPMorgan Owns the Safest Big Bank Dividend JPMorgan ranks first. It pairs a payout ratio near 25.8% with the highest CET1 ratio in the group, around $30 billion of estimated excess capital, and an unbroken dividend through 2020. Citigroup ranks second on the lowest payout ratio and a wider margin than Bank of America, which ranks third on regular annual increases despite the smallest capital buffer. Wells Fargo comes last because its 2020 cut is the most recent flaw in the group, though its yield and growth make it the strongest recovery story among the four.

Contact [email protected] for any questions or corrections.

Key Takeaways WFC plans to launch a stablecoin in the first half of 2027 with 20 international financial institutions.WFC's tokenized deposits settle corporate payments in two minutes or less, versus 1 to 2 days traditionally.WFC may expand crypto trading through a potential deal with Kraken's parent, Payward.
Wells Fargo & Company (WFC - Free Report) is positioning stablecoins as a potential growth avenue in cross-border and institutional payments. During its third-quarter 2026 earnings call on Oct. 13, chairman and CEO Charlie Scharf reiterated the bank’s plans, announced in September 2026, to launch a stablecoin in the first half of 2027 alongside 20 other international financial institutions. The offering is expected to support wholesale, institutional and retail use cases, with a focus on improving cross-border payments and facilitating digital asset settlements.

The planned launch marks another step in WFC’s ongoing efforts to build blockchain-based payment capabilities. In its 2025 annual report, the bank disclosed a collaboration with Early Warning Services to develop a reserve-backed stablecoin for retail and cross-border payments. The bank also filed a trademark application for “WFUSD” in March 2026, suggesting potential interest in stablecoin and cryptocurrency-related services. Building on these efforts, the new consortium aims to issue a U.S. dollar-denominated stablecoin with bank-grade compliance, governance and risk management to support its use in payments and digital asset markets.

Beyond stablecoins, Wells Fargo is developing complementary blockchain and cryptocurrency capabilities. In September 2026, the bank launched tokenized deposits on its proprietary blockchain platform for corporate and commercial clients. CFO Mike Santomassimo noted that transactions reach beneficiary accounts in two minutes or less compared with one to two days for traditional cross-border transfers. Separately, WFC is reportedly in talks with Payward, the parent company of cryptocurrency exchange Kraken, to secure liquidity for crypto trading, according to a Yahoo Finance article which cited CoinDesk. If finalized, the arrangement could help WFC expand its crypto trading capabilities without building its own exchange infrastructure.

The stablecoin initiative could strengthen WFC’s payments franchise through faster transactions, stronger client relationships and international expansion. CFO Mike Santomassimo noted that blockchain-based payment solutions could help the bank pursue international business without significant investments in local operations. Over time, stablecoins and tokenization could create opportunities in cross-border payments, securities and real-world assets, while cryptocurrency services could further broaden WFC’s digital finance offerings. These initiatives align with the bank’s broader digital payments strategy, including upgrades to its Wells Fargo Vantage corporate banking portal.

Overall, WFC’s planned stablecoin launch offers a potential long-term growth avenue. Alongside tokenized deposits, the initiative could create new revenue opportunities as commercially viable use cases emerge. However, the pace of adoption, commercial viability and evolving regulatory requirements will shape its success, making the initiative a longer-term growth opportunity rather than an immediate earnings driver.

How Are Other Banks Expanding Their Stablecoin Capabilities?Similar to Wells Fargo, Citigroup Inc. (C - Free Report) and JPMorgan Chase & Co. (JPM - Free Report) are expanding their digital-payments capabilities to capture opportunities in stablecoins and blockchain-based transactions.

In September 2026, Citigroup expanded its Coinbase Global partnership, enabling institutional clients to accept stablecoin payments and convert them into fiat currency for bank settlement. The arrangement also supports Coinbase Virtual Accounts through Citigroup’s banking infrastructure. Building on Citi Token Services and 24/7 USD Clearing, the partnership could strengthen cross-border payments and create fee opportunities as adoption grows.

In August 2026, JPMorgan explored a potential stablecoin to expand its blockchain-based payments strategy. Building on JPM Coin and Kinexys, JPMorgan could enable faster 24/7 settlement, improve liquidity management and deepen corporate relationships, creating fee opportunities and strengthening its digital-finance position.

On October 19, 2026, we conducted a DCF analysis for Wells Fargo and Co (WFC) amid its recent price performance, which has seen a slight uptick of 0.4% over the p

On its third quarter of 2026 earnings call, held on Oct. 13, 2026, Wells Fargo (WFC +1.35%) announced that diluted earnings per share increased 13% year-over-year to $1.87. Continuous operational efficiency enables the lender to reinvest cost savings into core growth areas while expanding profitability. Three key insights from management highlight how this execution supports long-term value.

1. Relentless Efficiency Drive Reduces Headcount for Six Straight YearsManagement keeps trimming non-revenue overhead to direct capital toward higher-returning units. Reducing staff every single quarter for six years gives the bank structural cost leverage over higher-cost competitors.

Headcount continued to decline, down 2% in the quarter, 8% year-over-year and down 30% from its second quarter 2020 peak and has decreased every quarter for the past 6 years.
-- Charles Scharf, Chief Executive Officer2. Targeted Banker Hiring Converts Business Clients Into High-Yield RelationshipsAdding specialized relationship managers in commercial and business banking expands primary deposit relationships and cross-selling. Paying for dedicated talent directly accelerates account expansion and higher-margin product uptake.

We've been investing in business banking, including adding over 130 business bankers over the past year. We are seeing the initial benefits in our results, including checking account openings up 9% and credit cards opening 61% from a year ago.
-- Charles Scharf, Chief Executive Officer3. Smart Balance Sheet Optimization Stabilizes Net Interest MarginsRefining institutional funding and netting structures expands earning efficiency across trading operations. Better balance sheet deployment protects net interest margin, which is the gap between what a bank earns on assets and pays on deposits, without requiring excessive risk-taking.

As we continue to grow the markets balance sheet on a gross basis, we are becoming increasingly more efficient in how we deploy it, and we made more progress this quarter than we originally anticipated.
-- Michael Santomassimo, Chief Financial OfficerLooking AheadReturn on tangible common equity (ROTCE), a key measure of how efficiently a bank generates profit from shareholder capital, is approaching target levels. Expanding commercial banking share, deepening client relationships, and harnessing artificial intelligence tools create durable structural advantages. Management is watching broader credit trends and macroeconomic swings while keeping risk limits tight.

Our progress toward building a growing high-returning company continues. Our ROTCE continues to increase and is getting closer to our 17% to 18% target.
-- Charles Scharf, Chief Executive OfficerDisciplined capital allocation and steady expense control anchor the lender's strategic momentum through changing interest rate cycles.

Though timing is influenced by markets and the credit environment, we are confident this trajectory can continue and ultimately, our targets should be higher.
-- Charles Scharf, Chief Executive OfficerWells Fargo is an advertising partner of Motley Fool Money. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo & Company (NYSE: WFC) announced that Cayetano Gea-Carrasco is joining the company as head of AI and Data for Consumer Banking and Lending.

It’s earnings season in the finance sector, and many banks are reporting earnings for the first time since the Federal Reserve's first interest rate hike since 2023. The hike was unanimous at 12-0, but the next move is anything but certain as we head into Q4.

That uncertainty is weighing on banks as they report Q3 results this week, and on Oct. 13 we got results from Wells Fargo & Co. NYSE: WFC, The Goldman Sachs Group Inc. NYSE: GS, and Citigroup Inc. NYSE: C. Although the rate cut came too late to affect Q3 results, it still forces banks to update their outlooks, and their guidance and projections can offer investors clues. Management at all three banks expressed optimism, but the market’s response to the results told the real story.

Get GS alerts:

Wells Fargo: The Beneficiary in WaitingWells Fargo & Company Today

WFC

Wells Fargo & Company

$81.89 +0.99 (+1.23%)

As of 11:09 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$72.78▼

$97.762.44%

11.56

$98.08

Wells Fargo is the most deposit-focused of the three, and it's expected to benefit most in a rising-rate environment. But investors looking for optimistic guidance probably weren’t thrilled with management’s full-year projections. The company reported its fiscal Q3 2026 results before the market opened and posted a slight beat on earnings per share (EPS), but revenue missed and rose only 2% year over year (YOY). Net interest income (NII) rose 5% YOY to $12.52 billion, and CFO Mike Santomassimo explicitly cited the rate environment as a net positive for the company heading into Q4.

But despite the positive commentary, management projects $13 billion in NII for Q4 and left its full-year 2026 NII projection unchanged at $50 billion. The Q4 figure would represent 4% sequential growth, but Santomassimo noted that Markets NII is liability-sensitive, which could offset some fee growth in Q4. And while NII growth was strong, net interest margin was flat sequentially at 2.43%.

Wells Fargo’s core revenue streams likely make it a winner in a high-rate environment, but the market didn’t respond well to management's “just trust me” guidance heading into Q4. The stock ended the day down 3%, but the price rejection at the 200-day moving average could have a longer impact. With the company saying rate benefits are basically punted into 2027, investors see a shaky road ahead for WFC shares, and the Relative Strength Index (RSI) staying under 50 suggests buyers are starting to thin out.

Goldman Sachs: Dealmaking Squeeze Isn’t MaterializingThe Goldman Sachs Group Today

GS

The Goldman Sachs Group

$878.94 +0.22 (+0.03%)

As of 11:09 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$740.01▼

$1,153.992.27%

12.65

$1,050.55

High rates don’t affect every bank equally. Wells Fargo expects rising rates to be a net positive since it earns more interest from loans. But what about banking activity that high rates hurt, like mergers and acquisitions? A dealmaking slowdown was the biggest concern heading into the Goldman Sachs report, but those fears proved largely unfounded. In fiscal Q3 2026, the company reported revenue of $18.68 billion, the second-highest figure on record and 23% higher than the same period a year ago. EPS of $17.01 also shattered the consensus expectation of $12.86 and exceeded $18 per share when charitable contributions were excluded. Investment banking fees rose 21% YOY to $3.22 billion, and advisory fees hit a record $1.65 billion.

But the dealmaking engine keeps churning, and this optimism likely helped the stock outperform peers who also reported on Oct. 13. CEO David Solomon noted that Q3 started with dealmaking activity at a five-year high and remains robust despite a late-quarter slowdown that pushed back several high-profile IPOs. The company has announced more than $1.5 trillion in M&A so far in 2026, which is more than $400 billion above the next closest competitor. Rate volatility could still impact dealmaking in future quarters, but today’s deal flow remains strong.

GS shares started the day up nearly 5% before giving back all its gains at then some and closing down 0.17%. This is the best performance of the three, but it's notable given Goldman’s strong earnings relative to the two deposit banks. Despite the RSI hitting extremely oversold levels, the stock's decline below the 50-day and 200-day moving averages dampens short-term momentum, and the market needs more rate clarity before this trend can reverse.

Citigroup: Strong Quarter That the Market Sold AnywayCitigroup Today

C

Citigroup

$121.68 -0.59 (-0.48%)

As of 11:09 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$95.00▼

$147.962.20%

11.89

$150.79

Citigroup could be considered the hedge between Wells Fargo and Goldman Sachs. The bank should benefit from higher rates through NII growth, but trading fees should also grow with market indices near all-time highs. In fiscal Q3 2026, both engines appear to be working. Citigroup reported its highest Q3 revenue in more than a decade at $23.85 billion, up 8% YOY. NII ex-Markets grew 7% YOY to $13.71 billion, while Markets grew 6% and Investment Banking grew 9%. Management also raised its full-year 2026 NII ex-Markets guidance to mid-to-high 6%, up from the 5% to 6% range it projected earlier in the year.

Citigroup raised NII projections while Wells Fargo left them flat. So why did Citigroup’s stock get punished more that day? The answer lies further in the guidance. CFO Gonzalo Luchetti expects Q4 Markets revenue to decline 20%, “or possibly more,” from Q3, and U.S. Consumer Card revenue was flat during the period. Luchetti says the guidance could be conservative, but the market disliked the news, and the stock fell sharply during the day, closing down more than 5.5%.

Despite the poor earnings reaction, C stock still has the most promising chart. The stock closed right at the 200-day moving average, keeping the long-term trend pointing in the right direction for now. However, the RSI is trending down, and investors are likely pricing in a quiet Q4 ahead of the next rate move.

Should You Invest $1,000 in The Goldman Sachs Group Right Now?Before you consider The Goldman Sachs Group, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and The Goldman Sachs Group wasn't on the list.

While The Goldman Sachs Group currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

AI spending is reshaping the market, and the opportunity extends far beyond the biggest chipmakers. Discover 10 stocks set to benefit from powerful trends in AI infrastructure, cloud computing, energy, capital returns, and consumer growth this fall.

Get This Free Report

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Wells Fargo & Company (NYSE:WFC) on Tuesday reported mixed third-quarter results.

Wells Fargo reported earnings of $1.87 per share, beating the Wall Street consensus estimate of $1.85. Earnings increased 13% from $1.66 per share a year earlier. Revenue rose 2% year over year to $21.870 billion, missing analysts’ expectations of $22.317 billion.

Wells Fargo reaffirmed its 2026 guidance, projecting net interest income of approximately $50 billion. The bank expects fourth-quarter net interest income of about $13 billion. It also maintained its full-year noninterest expense forecast of approximately $55.7 billion.

Wells Fargo shares fell 2.8% to trade at $78.48 on Wednesday.

These analysts made changes to their price targets on Wells Fargo following earnings announcement.

RBC Capital analyst Gerard Cassidy maintained the stock with an Outperform rating and cut the price target from $100 to $92. Morgan Stanley analyst Manan Gosalia maintained the stock with an Overweight rating and lowered the price target from $102 to $101. Considering buying WFC stock? Here’s what analysts think:

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Wells Fargo & Company (NYSE:WFC) received a lower price forecast from RBC Capital Markets on Tuesday, even as the brokerage maintained its bullish outlook following the bank’s third-quarter earnings.

RBC Capital Markets analyst Gerard Cassidy lowered his price forecast to $92 from $100 while maintaining an Outperform rating.

Cassidy said Wells Fargo is shifting from defense to growth after more than seven years of regulatory restrictions on its balance sheet.

“After seven-plus years of being restricted from growing its balance sheet due to its regulatory order, the move from defense-to-offense is underway as WFC surpassed $2.25 trillion in assets in 3Q26,” Cassidy said.

Growth Strategy Gains MomentumThe analyst highlighted Wells Fargo’s expansion beyond $2.25 trillion in assets during the third quarter as evidence of its renewed growth ambitions.

He also pointed to management’s medium-term return on tangible common equity target of 17% to 18%, which signals a stronger focus on growth and capital efficiency.

Cassidy expects the bank’s dividend payout ratio to eventually reach 30% to 40%. He also believes Wells Fargo could benefit from capital relief under proposed Basel III regulations.

Strong Earnings Support Bullish OutlookWells Fargo reported third-quarter earnings of $1.87 per share, beating RBC’s estimate of $1.86 and the consensus estimate of $1.82.

Revenue increased 2% year over year to $21.9 billion, supported by growth across all four operating segments.

Net interest income rose 4.7% to $12.5 billion, while the bank’s efficiency ratio improved to 63% from 65% a year earlier.

However, net interest margin narrowed to 2.43% from 2.61%, reflecting lower interest rates on floating-rate assets and higher deposit costs.

Cassidy also highlighted Wells Fargo’s cost discipline, including an 8% reduction in headcount.

RBC Maintains Earnings EstimatesDespite lowering his price forecast, Cassidy kept his earnings estimates unchanged at $7.25 per share for 2026 and $8.10 for 2027.

The revised valuation reflects RBC’s updated outlook, including higher net interest income offset by increased expenses.

The brokerage’s $92 price forecast implies roughly 14% upside from the $80.74 share price cited in its Oct. 13 research report, excluding dividends.

WFC Price Action: Wells Fargo shares were down 1.16% at $79.80 at the time of publication on Wednesday, according to Benzinga Pro data.

Photo via Shutterstock

Read Next

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Premium Feature

Moneyball Superscore

76/100

Today's Change

(

-1.14

%) $

-0.62

Current Price

$

53.96

Bank of America (BAC -1.14%), a global consumer and investment bank with diversified deposit, lending, and markets businesses, closed at $53.96, down 1.14%. Investors are waiting for Wednesday's earnings release, following the announcement of a $1.2 billion fine from the U.S. Treasury Department after hours on Tuesday. Trading volume reached 43.3M shares, coming in about 28% above its three-month average of 33.8M shares.

How the markets moved todayS&P 500 (^GSPC -0.02%) closed at 7,805, down 0.02%, and Nasdaq Composite (^IXIC -0.15%) closed at 27,204, down 0.15%. Among money center banking / diversified financial services peers, JPMorgan Chase (JPM -0.86%) closed at $331.43, down 0.86%, while Wells Fargo (WFC -3.10%) closed at $80.75, down 3.08% as big-bank earnings season shaped trading.

What this means for investorsThe Treasury Department has hit Bank of America with $1.2 billion in penalties for anti-money-laundering and sanctions law violations. The bank allegedly failed to report over $5 billion in suspicious payments for years.

Though this is the third-largest fine handed out in Treasury history, I don't think it is necessarily panic-worthy for investors just yet. BAC stock is a $350 billion market cap operation, so the potential penalty isn't a massive hit to the company. Bank of America's management said it expects to take a $1.2 billion charge in its Q3 earnings, which will result in a $0.17 decrease in EPS -- compared to BAC's share price around $54.

That said, the compliance costs to keep these types of issues under control will only continue to rise, and Bank of America can't afford to skimp on this spending, lest it risk being hit with tighter regulatory oversight that could weigh on profitability.

Not great news, obviously, but I'd argue tomorrow's earnings are likely much more important to long-term investors and Bank of America's overall investment thesis. Let's see how things turn out tomorrow and go from there.

Wells Fargo is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

Wells Fargo & Company (WFC) Q3 2026 Earnings Call October 13, 2026 10:00 AM EDT

Company Participants

John Campbell - Director of Investor Relations
Charles Scharf - CEO & Chairman
Michael Santomassimo - Senior EVP & CFO

Conference Call Participants

John McDonald - Truist Securities, Inc., Research Division
Kenneth Usdin - Bernstein Autonomous LLP
Ebrahim Poonawala - BofA Securities, Research Division
Manan Gosalia - Morgan Stanley, Research Division
L. Erika Penala - UBS Investment Bank, Research Division
Christopher McGratty - Keefe, Bruyette, & Woods, Inc., Research Division
Matthew O'Connor - Deutsche Bank AG, Research Division
John Pancari - Evercore ISI Institutional Equities, Research Division
David Chiaverini - Jefferies LLC, Research Division

Presentation

Operator

Welcome, and thank you for joining the Wells Fargo Third Quarter 2026 Earnings Conference Call. [Operator Instructions]

Please note that today's call is being recorded. I would now like to turn the call over to Mr. John Campbell, Director of Investor Relations. Sir, you may begin the conference.

John Campbell
Director of Investor Relations

Good morning. Thank you for joining our call today where our CEO, Charlie Scharf; and our CFO, Mike Santomassimo, will discuss third quarter results and answer your questions. This call is being recorded. Before we get started, I would like to remind you that our third quarter earnings materials, including the release, financial supplement and presentation deck are available on our website at wellsfargo.com.

I'd also like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties. Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings, including the Form 8-K filed today containing our earnings materials. Information about any non-GAAP financial measures referenced, including a reconciliation of those measures to GAAP measures, can also be found in our SEC filings and the earnings materials available on our website.

Bank Earnings Are Roaring, But Wall Street Isn't Ready to CelebrateWells Fargo & Company NYSE: WFC reported third-quarter results marked by higher earnings, broad-based revenue growth, loan and deposit expansion, and improved returns, while executives said credit conditions remained strong despite risks tied to inflation, interest rates and commercial real estate valuations.

Chief Executive Officer Charlie Scharf said earnings per share rose 13% from a year earlier to $1.87. Return on tangible common equity reached 16.3% for the quarter, compared with 14.7% for the first nine months of 2025, moving closer to the bank's 17% to 18% target range.

Get Wells Fargo & Company alerts:

Revving Up Returns: Big Banks Race Through the Rate PlateauRevenue increased 2% year over year, with growth in each operating segment partly offset by lower venture-capital investment revenue and lower lease income following the first-quarter sale of the railcar leasing business. Non-interest expense declined modestly, as a 15% increase in revenue-related costs was more than offset by a 4% decline in non-revenue-related expenses, Scharf said.

Balance-sheet growth and net interest income Average loans and deposits each increased 11% from a year earlier during the third quarter. Chief Financial Officer Mike Santomassimo said average loans rose $105 billion, led by commercial and industrial lending, while auto loans, securities-based lending and credit cards were the main consumer growth areas. Average deposits rose $143 billion, supported by commercial and interest-bearing deposit growth.

Fiserv’s Debit Network Talks Raise a Bigger Question for Visa and MastercardNet interest income increased $567 million, or 5%, from a year earlier and 2% from the second quarter. The bank said the improvement reflected higher loan and securities balances, fixed-rate asset repricing, higher rates on floating-rate assets and an additional day in the quarter.

Wells Fargo expects full-year 2026 net interest income of about $50 billion, with fourth-quarter net interest income expected to be approximately $13 billion. Santomassimo said the net interest margin is expected to remain stable sequentially in the fourth quarter. He added that the bank expects benefits from loan and deposit growth, fixed-rate asset repricing and securities balances, although higher rates can pressure net interest income in the liability-sensitive markets business.

The company said it continued to improve the efficiency of its markets balance sheet through measures including sponsored repo arrangements and other optimization tools. Santomassimo said fixed-income financing gross balances rose 18% from the second quarter while net balances declined, reflecting those efforts.

Business-line momentum Wealth and Investment Management revenue rose 12% from a year earlier, while Commercial Banking revenue increased 6%, Consumer Banking and Lending revenue grew 5%, and Corporate and Investment Banking revenue rose 3%.

In Consumer Banking and Lending, the company recorded its 14th consecutive quarter of year-over-year growth in primary checking accounts. Scharf said business banking checking-account openings increased 9%, while credit-card account openings rose 61%. The bank opened more than 660,000 credit-card accounts during the quarter, and auto originations increased 15% from a year earlier.

Santomassimo said the bank's more recent credit-card vintages have been larger than earlier ones and should contribute more meaningfully to profitability as they mature. He said Wells Fargo expects card originations to remain in a range of roughly 600,000 to 700,000 accounts per quarter for a period.

Wealth and Investment Management client assets increased 11% to $2.5 trillion, and average loan balances in the unit rose 16%. Scharf highlighted investments in advisor technology, alternative investment offerings and an AI-powered tool for financial advisors.

Within Corporate and Investment Banking, banking revenue rose 8%, including a 10% increase in investment-banking revenue. M&A revenue rose 30%, while equity capital markets and investment-grade underwriting fees each climbed 33%. Wells Fargo said its equity capital markets market share rose 84 basis points to 3.9%, and its rank in announced U.S. M&A volume improved to sixth from ninth a year earlier.

Markets revenue was roughly stable from a year ago, however, as late-quarter interest-rate moves pressured fixed-income valuations and reduced client activity. Equities revenue increased 21%, but Santomassimo said lower volatility created a less favorable environment for the bank's equities derivatives franchise.

Credit, capital and expenses Credit performance remained favorable. The net loan charge-off ratio was 38 basis points of average loans, down from a year earlier, while consumer net charge-offs declined to 70 basis points. Commercial net charge-offs were 18 basis points, up eight basis points from the second quarter but stable from a year earlier.

Executives said they do not currently see broad-based credit deterioration. Scharf said consumer spending remained strong, with debit-card spending up 8% and credit-card spending up 12% from a year earlier. He said early-stage delinquencies remained historically low, while commercial customers continued to show solid loan demand and credit performance.

Still, management cited persistent inflation, elevated rates, geopolitical uncertainty and potential risks associated with the financing of AI-related infrastructure. Santomassimo said higher rates would mathematically pressure commercial real estate valuations, though he did not see an acute issue developing in the immediate term. He said the bank remained comfortable with its allowance for credit losses related to commercial real estate.

Wells Fargo's common equity tier 1 ratio was 10%, above its 8.5% regulatory minimum plus buffers. During the quarter, the company raised its common dividend to $0.50 per share and repurchased $2.5 billion of stock. Management said it intends to operate within a 10% to 10.5% CET1 target range and will use buybacks as a capital-management lever after considering growth opportunities and risks.

The company reaffirmed its expectation for approximately $55.7 billion in 2026 non-interest expense. Santomassimo said revenue-related expenses are now expected to exceed the original forecast by roughly $400 million, but efficiency savings are expected to offset that increase. Scharf said the bank sees further opportunity to use AI to improve customer service and operational efficiency while maintaining a disciplined approach to risk.

About Wells Fargo & Company (NYSE:WFC)Wells Fargo & Company NYSE: WFC is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals, businesses, institutions, and government entities. Its offerings include checking and savings accounts, credit cards, personal and commercial loans, mortgages, payment services, and other deposit and credit products.

The company also provides investment banking, capital markets, brokerage, advisory, asset management, and retirement services through its corporate and investment banking and wealth and investment management businesses.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Wells Fargo & Company Right Now?Before you consider Wells Fargo & Company, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Wells Fargo & Company wasn't on the list.

While Wells Fargo & Company currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.

Get This Free Report

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Wells Fargo & Co (NYSE:WFC, XETRA:NWT) reported third-quarter earnings per share of $1.87, beating analyst estimates of $1.85 and rising 13% from a year earlier. 

Net income increased 6% to $5.95 billion. Return on equity reached 13.8%, ahead of the 13.4% analysts expected, and return on tangible common equity was 16.3%. 

Revenue grew 2% to $21.9 billion, slightly below the $22.3 billion estimate. Net interest income was $12.52 billion versus $12.63 billion expected, and noninterest income was $9.35 billion versus $9.59 billion. 

Wealth and Investment Management led segment growth, with revenue up 12% to $4.1 billion. Commercial Banking revenue rose 6% to $3.24 billion, Consumer Banking and Lending gained 5% to $10.66 billion, and Corporate and Investment Banking grew 3% to $5.01 billion. 

Within the corporate and investment bank, investment banking revenue climbed 10% to $611 million and equities revenue jumped 21% to $543 million. Fixed income, currencies and commodities revenue fell 7% to $1.26 billion. 

Average loans rose 11% to $1.03 trillion, average deposits increased 11% to $1.48 trillion, and client assets grew 11% to $2.74 trillion. The bank repurchased $2.5 billion of stock, or 28.6 million shares. Its CET1 ratio was 10.0%, against an estimate of 10.1%. 

“While economic uncertainty exists and consumer sentiment remains mixed, our data shows that our consumer and business customers are doing well,” CEO Charlie Scharf said in a statement. 

Shares were down 1.3% at the open Tuesday. 

JPMorgan Chase (JPM) earnings showed a double miss and gained after the opening bell while Wells Fargo (WFC) showed mixed results and traded lower. Diane King Hall offers a closer look into the latter's report and discusses the investor reaction to the earnings.

As digital dollars become more integrated into payments and financial services, Reeve Collins, co-founder of Tether and chairman at WeFi, believes traditional banks may have to fight harder to retain the low-cost deposits that underpin their lending businesses.

"For banks, I would focus on deposits," Collins told Benzinga in an exclusive email interview.

Customer deposits provide banks with funding for loans and other financial activities. Low-cost deposits are particularly valuable because they can help banks fund lending without relying as heavily on more expensive alternatives.

For JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC) and Wells Fargo & Co. (NYSE:WFC), the longer-term question is whether stablecoins and digital wallets could change where customers choose to hold and use their money.

More Than a Payments Story"When the wallet becomes the place people keep and use their money, the bank has to earn that relationship again," he said.

If consumers increasingly manage cash, investments, borrowing and payments through a single digital wallet, traditional banks could face greater competition for customer balances. That does not mean deposits are already fleeing banks for stablecoins, but it highlights a potential pressure point investors should watch.

Stablecoins Change the CompetitionRead Next

Part of the stablecoin appeal includes moving money across blockchain networks without relying on every step of traditional payment infrastructure.

Circle Internet Group Inc. (NYSE:CRCL), issuer of the USDC stablecoin, offers investors a different way to gain exposure to this shift. Collins noted that Circle earns income on its reserves, making interest rates an important driver of its business.

That creates a different investment equation. Circle’s opportunity depends on stablecoin usage and reserve economics, while banks must also consider the potential implications for deposit funding. Stablecoin adoption alone, however, does not establish that banks will lose deposits: the impact depends on how consumers use digital dollars, where issuers hold reserves and how financial institutions respond.

What Bank Investors Should WatchFor JPMorgan, Bank of America and Wells Fargo, the key signals are deposit growth, funding costs and changes in the mix of customer balances. If deposit competition intensifies, banks could face pressure to offer more attractive rates or seek alternative funding, potentially hurting profitability.

For Circle, investors should watch whether USDC adoption translates into durable growth, while accounting for the sensitivity of reserve income to interest rates.

Collins’ warning is ultimately about who controls the customer relationship. Stablecoins may become a stronger competitive force if consumers start using digital wallets as their primary financial hub.

For bank investors, the important question is not simply how quickly stablecoins grow, but whether that growth changes the economics of holding deposits.

Read Next

Photo Courtesy: Funtap on Shutterstock.com

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

13.10.2026 16:31, WDC, C, MU, JPM, GS, WFC

Index Dow Jones +0,31 % na 52010,02 b., S&P 500 +0,03 % na 7809,9 b., Nasdaq Composite -0,03 % na 27238,51 b.

V úvodu seance se přední americké indexy obchodují smíšeně.

Americká banka Citigroup (-1,37 %) oznámila výsledky za 3. čtvrtletí 2026. Výnosy Citi dosáhly 23,85 mld. USD při očekávání 23,72 mld. USD. Čisté úrokové výnosy činily 16,98 mld. USD nad očekáváním 16,64 mld. USD. Výnosy z obchodování dluhopisů, měn a komodit (FICC) reportovala Citi ve výši 4,39 mld. USD při analytických odhadech 4,26 mld. USD. Obchodování s akciemi bance vyneslo 1,73 mld. USD, což nedosahuje na analytický konsensus ve výši 1,78 mld. USD. Výnosy z investičního bankovnictví dosáhly 1,35 mld. USD. Rentabilita hmotného vlastního kapitálu (ROTCE) dosáhla 11,5 % při očekávání 10,7 %. Ukazatel kapitálové přiměřenosti CET1 byl 12,8 %.

Další bankou, která otevřela americkou výsledkovou sezónu, byla Wells Fargo (-2,24 %). Celkové výnosy bankovního domu dosáhly 21,87 mld. USD, přičemž očekávání trhu bylo 22,31 mld. USD. Čisté úrokové výnosy dosáhly 12,52 mld. USD při odhadech 12,59 mld. USD. Výnosy ze spotřebitelského bankovnictví a úvěrování činily 10,66 mld. USD, komerční bankovnictví vygenerovalo 3,24 mld. USD, korporátní a investiční bankovnictví dosáhlo 5,01 mld. USD a správa majetku 4,10 mld. USD.

Před otevřením trhu reportovala také investiční banka Goldman Sachs (+1,7 %). Ta vykázala čisté výnosy ve třetím kvartálu 18,68 mld. USD. Čisté úrokové výnosy banky dosáhly 3,77 mld. USD při očekávání Wall Street 3,61 mld. USD. Výnosy ze segmentu globálního bankovnictví a trhů činily 13,46 mld. USD. Trh očekával 11,8 mld. USD. Výnosy z divize obchodování dluhopisů, měn a komodit (FICC) vzrostly na 3,23 mld. USD při očekávání analytiků 3,72 mld. USD. Divize obchodování s akciemi vykázala výnosy 6,44 mld. USD, čímž předčila odhady trhu ve výši 5,09 mld. USD. Výnosy z divize investičního bankovnictví byly 3,23 mld. USD nad odhady 2,86 mld. USD.

Výsledky zveřejnila také JPMorgan (+0,41 %), zprávu k výsledkům připravujeme. Dále dnes před otevřením trhu reportovaly například společnosti UnitedHealth Group (-0,96 %) a Johnson & Johnson (-5,1 %). Kompletní kalendář společností z námi sledovaných trhů, které zveřejní hospodářské výsledky tento týden, naleznete zde.

Významně dnes odepisují akcie společnosti Western Digital (-4,3 %). Analytik Timothy Arcuri z UBS snížil cílovou cenu akcií Western Digital z 525 USD na 470 USD. Investiční doporučení ponechal na stávajícím stupni „Neutral“. Ztrácí v úvodu také akcie společnosti Micron (-4,53 %), když Elon Musk označil na síti X čínského výrobce pamětí CXMT jako seriózního hráče.

Index S&P 500 +0,03 % na 7809,9 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1,1 % Zdravotní péče -0,7 % Komunikační služby +1,1 % Průmysl -0,4 % Zbytná spotřeba +0,6 % Utility -0,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Cognizant Technology Solutions Corp (CTSH) +3,9 % Western Digital Corp (WDC) -5,4 % Salesforce (CRM) +3,9 % Seagate Technology Holdings (STX) -5,2 % HP (HPQ) +3,5 % Micron Technology (MU) -4,3 % Veeva Systems (VEEV) +3,5 % Flex (FLEX) -4,0 % Valero Energy Corp (VLO) +3,0 % Johnson & Johnson (JNJ) -3,9 % Zdroj: Bloomberg

Jan Prokeš
Fio banka, a.s.
Prohlášení

Wells Fargo (WFC.N) posted an increase in third-quarter profit on Tuesday, helped by growth in its loan ​book and higher interest income.

The fourth-largest US lender reported net income ‌of $5.95 billion, or $1.87 per share, for the three months ended September 30, compared with $5.59 billion, or $1.66 per share, in the year-ago period.

Wells Fargo's net interest income — the difference between what a ​lender earns on loans and pays out on deposits — rose 5% to $12.52 ​billion in the quarter.

The bank has been able to deploy more ⁠of its balance sheet since the Federal Reserve removed a years-long regulatory cap ​on its assets, giving it greater room to compete for loans.

Wells has leaned on ​credit cards and auto loans to grow its consumer loan book, tapping into healthy spending trends.

The US economy has remained on a firm footing due to heavy AI-led business investments, resilient consumer ​spending and relative stability in the labor market.

"While economic uncertainty exists and consumer ​sentiment remains mixed, our data shows that our consumer and business customers are doing well," CEO ‌Charlie ⁠Scharf said in a statement.

US banks have also benefited from the reinvestment of matured assets into higher-yielding vehicles, boosting overall margins.

Chief Financial Officer Mike Santomassimo last month struck an upbeat tone on the bank's loan growth forecast for the year, signaling ​credit and spending ​trends remained healthy ⁠despite concerns that higher costs could squeeze household budgets.

Despite expectations for strong earnings, banking stocks have sold off recently as investors ​turn cautious on the prospect of continued interest rate hikes ​by the ⁠Federal Reserve dampening economic activity. The KBW Bank Index has shed more than 12% from its August highs.

Shares of the bank were down 1.5% in premarket trading. They ⁠have declined ​more than 10% this year to Monday's close.

Although ​analysts expect elevated bond yields to support Wells' net interest income in the near term, rising funding ​costs could temper economic growth.

Big banks will begin a highly anticipated earnings season on Wall Street Tuesday morning. Among the biggest names: JPMorgan Chase (JPM), Wells Fargo (WFC), Goldman Sachs (GS), and Citigroup (C) among others.

A Chicago Fed scholar just dismantled the most popular explanation for why long-term Treasury yields sit near generational highs, and her actual answer changes how you should think about the bonds sitting in your safety net.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Bloomberg’s Joe Weisenthal put the market’s favorite theory to his guest flat out on Odd Lots. Are yields rising “straightforwardly because they’re issuing so many of them?” Carolin Pflueger said supply is “very simple” in her framework: “We’re all taxpayers and to the extent that we’re also holding bonds, it’s just going from one pocket to the other.”

Pflueger is an associate professor at the University of Chicago Harris School and a resident scholar at the Chicago Fed. She was speaking about her own research, and her comments do not represent the Fed’s views.

Her answer matters because of where rates sit. On October 2, the 10-year Treasury yielded 5.3% and the 30-year paid 5.63%. A week and a half earlier, CNBC’s Fast Money ran the headline “U.S. 10-Year Yield Hits 19-Year High.” Paul Christopher of Wells Fargo (NYSE:WFC | WFC Price Prediction) told CNBC that higher yields partly reflect compensation for competing bond issuance. If you build your portfolio around that story, you are protecting yourself from the wrong risk.

Why Pflueger’s Explanation Holds Up Better Than the Supply Story Her verdict is right. The logic is the old economic idea called Ricardian equivalence. Every new Treasury bond is a future tax bill. The households paying those taxes are, through pensions, 401(k)s and money funds, the same households holding the bonds. Extra borrowing moves money between your left pocket and your right pocket.

Research by Pflueger and co-authors finds that the majority of the rise in the 10-year yield from 2020 to 2025 came from bonds becoming more stock-like. Changes in long-term inflation expectations explain much less.

Treasury data supports that. The 30-year inflation-protected yield sat near 3.3%. Strip that out of the 5.63% nominal yield and the market is pricing roughly 2.3% annual inflation over three decades. That sits close to the Fed’s 2% target. Most of the 30-year’s yield is real compensation for risk.

Pflueger pins down what that risk is: “There is actually something about the co-movement with the stock market which would suggest that these bond risks are at least to a first order priced against the stock market.” Bonds that fall when stocks fall are no longer insurance. Investors demand a higher yield to hold them.

Your Bonds’ Behavior in a Crash Decides the Outcome The variable that matters is whether your bonds rise or fall when stocks drop. Take an sample $500,000 portfolio split 60/40, then hit stocks with a 20% decline. The stock side loses $60,000.

Say bonds act as a hedge and gain 5%. That adds $10,000, so the net loss is $50,000, or 10%.

Now say bonds move with stocks and fall 5%. The loss grows to $70,000, or 14%. The portfolio and the crash are identical. The only change is the sign on the bond move.

Long-duration holders have already lived through the bad version. Jared Woodard of Bank of America (NYSE:BAC) told Barron’s that the “20-plus year treasury bond ETF is down 40% since the summer of COVID.”

A 30-year bond that moves like a stock still pays its coupon. An sample $10,000 Treasury bought at 5.63% and held to maturity pays $563 a year no matter what its price does. Pflueger’s point is about what bonds do for you in a crash. The coupon continues paying even though the crash protection has worn off.

How to Rebuild Your Hedge While Long Bonds Act Like Stocks Look up your bond fund’s duration. Duration roughly tells you the percentage price drop for each one-point rise in yields. A fund with a duration of 15 loses about 15% if rates climb a point. That is equity-sized risk sitting in your “safe” bucket. Run the 20% crash test on your own balances. Plug in your actual stock and bond dollars. Model one case where bonds gain 5% and one where they lose 5%. That difference is the protection you may no longer have. Continues income and insurance in separate buckets. Individual Treasuries held to maturity can lock in income. For crash protection, short-term bills carry little price risk. The 1-month bill yielded 4%, so the safer bucket still pays. Plan home purchases around current rates. The average 30-year mortgage hit 7.3%, the highest reading in a year. If supply is a wash, slower deficit growth will not bring that rate down. Finance the purchase at today’s rate and treat any later refinance as a bonus. You get paid 5.63% on the long bond because it now acts like a stock, so treat it as one when you size your safety net.

Contact [email protected] for any questions or corrections.

Key Takeaways WFC is reportedly discussing a partnership with Payward to receive liquidity for cryptocurrency trading.Payward's infrastructure could help Wells Fargo serve crypto clients without building its own exchange.Planned tokenized deposits and existing crypto ties are expected to expand its digital-asset capabilities. Wells Fargo & Company (WFC - Free Report) is planning to expand its cryptocurrency trading capabilities. In sync with this, the company is in talks with Payward, the parent company of cryptocurrency exchange Kraken, to obtain liquidity for crypto trading. This was first reported by CoinDesk.

This highlights Wells Fargo’s intention to expand its role in cryptocurrency trading infrastructure. Liquidity helps traders execute transactions efficiently and supports the smooth functioning of digital-asset markets. If finalized, the arrangement could strengthen the bank’s relationships with crypto-market participants and create opportunities to serve their financial needs.

Payward offers trading and financial infrastructure through its Payward Services division, which serves banks, fintechs, brokerages and payment companies. This infrastructure could enable Wells Fargo to offer crypto trading services without building its own exchange infrastructure.

Wells Fargo already has exposure to the digital-asset industry. The bank offers spot Bitcoin exchange-traded funds (ETFs) to eligible wealth-management clients and has backed crypto compliance firm Elliptic and trading technology provider Talos.

Wells Fargo is also advancing its blockchain-based payments capabilities through plans to launch tokenized deposits for corporate and commercial clients. Scheduled for an initial rollout this year, the offering is designed to enable eligible clients to transfer and settle funds around the clock, initially supporting select U.S. dollar-to-British pound transactions. This initiative reflects the bank’s efforts to modernize its payments infrastructure and respond to corporate demand for faster, more flexible settlement.

Our Take on Wells Fargo’s Digital Assets Expansion PlanWells Fargo’s reported discussions with Payward could expand its institutional services in crypto trading infrastructure and create opportunities to serve digital-asset businesses. Its existing digital-asset investments and Bitcoin ETF offering provide context for the potential relationship. Alongside its planned tokenized-deposit offering for corporate and commercial clients, the initiative could strengthen Wells Fargo’s digital-asset capabilities and modernize its payments infrastructure.

However, the deal remains unconfirmed, and its financial benefits will depend on the agreement’s terms, trading activity and associated costs. Further, regulatory uncertainty, counterparty exposure, market volatility and operational challenges remain key risks.

Over the past year, shares of Wells Fargo have rallied 5.7%, compared with the industry’s 11.2% growth.

One-Month Price Performance

Image Source: Zacks Investment Research

Currently, Wells Fargo carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Financial Companies Expanding Digital Asset InitiativesLike WFC, The Bank of New York Mellon (BNY - Free Report) and Citigroup (C - Free Report) are expanding their digital-asset capabilities to capitalize on the growing adoption of blockchain technology across financial services. BNY is advancing tokenized deposits and staking services, enabling institutional clients to explore blockchain-based financial solutions and digital-asset investment opportunities. Meanwhile, Citigroup is expanding its digital-asset capabilities, including its partnership with Coinbase to support stablecoin payments and fiat settlement.

These initiatives could help banks improve transaction efficiency, strengthen institutional client relationships and develop new sources of fee income. As demand for digital-asset infrastructure grows, investments in tokenization, blockchain-based payments and related services may support long-term growth and enhance the competitive positioning of traditional financial institutions.

Diversified Management Inc. boosted its position in shares of Wells Fargo & Company (NYSE:WFC) by 170.2% during the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 14,197 shares of the financial services provider’s stock after acquiring an additional 8,942 shares during the period. Diversified Management Inc.’s holdings in Wells Fargo & Company were worth $1,136,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. First Heartland Consultants Inc. raised its stake in shares of Wells Fargo & Company by 2.6% in the 3rd quarter. First Heartland Consultants Inc. now owns 9,407 shares of the financial services provider’s stock valued at $753,000 after buying an additional 241 shares in the last quarter. GAMMA Investing LLC boosted its position in shares of Wells Fargo & Company by 13.8% during the 3rd quarter. GAMMA Investing LLC now owns 81,412 shares of the financial services provider’s stock valued at $6,517,000 after acquiring an additional 9,897 shares in the last quarter. Artemis Investment Management LLP increased its stake in Wells Fargo & Company by 33.6% in the third quarter. Artemis Investment Management LLP now owns 127,539 shares of the financial services provider’s stock valued at $10,209,000 after acquiring an additional 32,050 shares during the period. YHB Investment Advisors Inc. increased its stake in Wells Fargo & Company by 1.8% in the third quarter. YHB Investment Advisors Inc. now owns 26,045 shares of the financial services provider’s stock valued at $2,085,000 after acquiring an additional 460 shares during the period. Finally, Titleist Asset Management LLC raised its position in Wells Fargo & Company by 8.5% in the third quarter. Titleist Asset Management LLC now owns 5,918 shares of the financial services provider’s stock worth $474,000 after purchasing an additional 462 shares in the last quarter. 75.90% of the stock is currently owned by institutional investors and hedge funds.

Wells Fargo & Company News Summary Here are the key news stories impacting Wells Fargo & Company this week:

Positive Sentiment: TD Cowen initiated coverage with a Buy rating and a $95 price target, implying meaningful upside from recent trading levels. TD Cowen Wells Fargo analyst coverage Positive Sentiment: Options activity was unusually strong, with traders purchasing 88,948 WFC call contracts—more than double the average daily volume. This suggests increased short-term bullish speculation, though options activity is not a guarantee of future gains. Positive Sentiment: Morgan Stanley recently upgraded Wells Fargo to Overweight, named it a top pick, and assigned a $102 target, reinforcing the view that the stock’s valuation may be attractive after its recent reset. Morgan Stanley Wells Fargo upgrade Neutral Sentiment: Wells Fargo is reportedly discussing a potential agreement with Kraken parent Payward to provide liquidity for crypto trading. The deal could expand fee-generating capabilities, but discussions are preliminary, unconfirmed, and carry regulatory and execution risks. Wells Fargo Payward crypto liquidity discussions Neutral Sentiment: Analysts are preparing for Wells Fargo’s third-quarter 2026 results, with attention on revenue, net interest income, credit quality, and expense trends. The earnings preview itself does not provide a new estimate or guidance change. Wells Fargo third-quarter earnings preview Negative Sentiment: The Department of Housing and Urban Development is investigating whether Wells Fargo’s programs intended to increase Black and minority homeownership violated fair-lending laws. The probe creates potential legal costs, reputational damage, and renewed concerns about regulatory scrutiny—pressuring the stock after the report. Wells Fargo HUD lending probe Negative Sentiment: Analysts note that sharply rising bond yields can pressure banks through higher funding costs, unrealized securities losses, and weaker loan demand ahead of third-quarter results. Banks under pressure from rising yields Wells Fargo & Company Stock Up 2.3% Shares of NYSE:WFC opened at $82.08 on Friday. The company has a quick ratio of 0.90, a current ratio of 0.90 and a debt-to-equity ratio of 1.09. The firm has a market cap of $248.23 billion, a P/E ratio of 11.93, a P/E/G ratio of 0.86 and a beta of 0.96. Wells Fargo & Company has a 12 month low of $72.78 and a 12 month high of $97.76. The company’s 50-day moving average price is $85.89 and its two-hundred day moving average price is $83.18. Wells Fargo & Company (NYSE:WFC – Get Free Report) last announced its earnings results on Tuesday, July 14th. The financial services provider reported $1.96 earnings per share for the quarter, topping analysts’ consensus estimates of $1.73 by $0.23. Wells Fargo & Company had a net margin of 17.55% and a return on equity of 13.85%. The company had revenue of $22.62 billion during the quarter, compared to the consensus estimate of $21.86 billion. During the same period in the previous year, the firm posted $1.60 earnings per share. The company’s revenue was up 8.6% on a year-over-year basis. As a group, research analysts forecast that Wells Fargo & Company will post 7.27 EPS for the current fiscal year.

Wells Fargo & Company Increases Dividend The company also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Friday, August 7th were issued a $0.50 dividend. This is a positive change from Wells Fargo & Company’s previous quarterly dividend of $0.45. This represents a $2.00 annualized dividend and a yield of 2.4%. The ex-dividend date was Friday, August 7th. Wells Fargo & Company’s dividend payout ratio (DPR) is 29.07%.

Analysts Set New Price Targets A number of research analysts have commented on WFC shares. Robert W. Baird raised their price target on shares of Wells Fargo & Company from $85.00 to $92.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 15th. Raymond James Financial reiterated a “market perform” rating on shares of Wells Fargo & Company in a research report on Tuesday, July 14th. Morgan Stanley upgraded Wells Fargo & Company from an “equal weight” rating to an “overweight” rating and set a $102.00 price objective for the company in a research note on Monday. Bank of America boosted their target price on shares of Wells Fargo & Company from $95.00 to $102.00 and gave the company a “buy” rating in a research note on Tuesday, July 7th. Finally, UBS Group dropped their price objective on shares of Wells Fargo & Company from $104.00 to $102.00 and set a “buy” rating for the company in a report on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $99.47.

View Our Latest Stock Analysis on Wells Fargo & Company

Wells Fargo & Company Profile (Free Report)

Wells Fargo & Company (NYSE: WFC) is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals, businesses, institutions, and government entities. Its offerings include checking and savings accounts, credit cards, personal and commercial loans, mortgages, payment services, and other deposit and credit products.

The company also provides investment banking, capital markets, brokerage, advisory, asset management, and retirement services through its corporate and investment banking and wealth and investment management businesses.

Featured Articles Five stocks we like better than Wells Fargo & Company Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push Want to see what other hedge funds are holding WFC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Wells Fargo & Company (NYSE:WFC – Free Report).

Receive News & Ratings for Wells Fargo & Company Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Wells Fargo & Company and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways Wells Fargo shares fell 1.5% in yesterday's trading session after HUD launched a fair-lending review.Wells Fargo faces a HUD review over allegations that it offered different lending products based on race.WFC has terminated 14 consent orders since 2019, while the Fed lifted its asset cap in June 2025. Shares of Wells Fargo & Company (WFC - Free Report) lost 1.5% in yesterday’s trading session after it was revealed that the Department of Housing and Urban Development (HUD) is planning to probe the bank’s compliance with fair-lending laws. Per a Yahoo Finance report citing The Wall Street Journal, HUD sent a letter to CEO Charlie Scharf stating that it would investigate the allegations that the company favored Black and other minority homeowners.

The scrutiny stems from a nearly decade-long effort by WFC to address the homeownership gap among Black Americans. In 2017, the bank committed $60 billion in loans to help add at least 250,000 Black homeowners by 2027. It expanded the initiative in 2022 by offering to refinance minority-owned homes using its own funds. According to the report, by late 2023, the bank had fulfilled about 40% of its original lending commitment and helped refinance roughly 5,100 customers.

The review centers on Wells Fargo’s lending practices, with HUD alleging that the bank adopted a strategy of “sorting” homeowners and offering different products or terms based on race. HUD Secretary Scott Turner said that the agency plans to conduct a full review of WFC’s statements and practices. The review also covers similar initiatives at other banks, reflecting the Trump administration’s broader focus on corporate diversity, equity and inclusion programs and lending practices.

The latest investigation comes after WFC made considerable progress in resolving its longstanding regulatory issues. Since 2019, the bank has terminated 14 consent orders, while the Federal Reserve lifted its nearly seven-year asset cap in June 2025 and closed its 2018 enforcement action related to governance and risk management in March 2026. Reflecting these improvements, last month, S&P Global Ratings upgraded the company’s long-term issuer credit rating to “A-” from “BBB+” with a stable outlook, citing stronger risk management, culture and oversight, improved profitability and deeper client relationships.

The HUD review adds regulatory scrutiny for Wells Fargo at a time when the bank is focusing on business growth and improving profitability. A finding of unlawful differences in lending products could lead to additional compliance requirements and reputational pressure. For investors, WFC’s response and continued progress in profitability, regulatory remediation and client relationships will remain key areas to watch.

Wells Fargo’s Price Performance & Zacks RankWFC shares have lost 6.6% in the past six months against the industry’s growth of 4.8%.

Image Source: Zacks Investment Research

Wells Fargo currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Regulatory Matters at Other FirmsUnlike WFC, which is facing a fresh HUD review over its lending initiatives, other firms, such as Credit Acceptance Corporation (CACC - Free Report) and Franklin Templeton (BEN - Free Report) , have resolved regulatory and legal matters involving their lending and investment-management practices.

In September 2026, Credit Acceptance reached a settlement with the New York Attorney General and 40 other state attorneys general over its subprime auto-lending practices. Under the agreement, Credit Acceptance will provide more than $630 million in debt relief to over 55,000 consumers, contribute $60 million to a relief fund and pay $15.5 million to the states, without admitting wrongdoing.

In June 2026, Franklin agreed to pay a $100 million civil penalty to settle SEC charges against its subsidiary, Western Asset Management Company, related to alleged trade-allocation misconduct by its former co-chief investment officer. The settlement also concluded Franklin’s related investigations by the SEC and the Department of Justice.

Wells Fargo stock slipped as federal housing officials announced a probe into its mortgage programs aimed at boosting black and minority homeownership — with Housing Secretary Scott Turner blasting the bank’s race-based approach as “immoral” and “un-American.”

The investigation from the Department of Housing and Urban Development, which put Wells Fargo CEO Charlie Scharf on notice in a Wednesday letter — marked the latest Trump administration effort to crack down on DEI programs and similar efforts.

“Even if Wells Fargo did not violate the law, its practice of dividing Americans based on race is immoral, unethical and un-American,” Turner said in a statement.

HUD is reviewing Wells Fargo’s race-conscious mortgage initiatives, including programs aimed at expanding homeownership among black and other minority borrowers. Bloomberg via Getty Images “Wells Fargo and all of its employees that engaged in race-based decision-making should be ashamed of themselves.”

News of the probe, first reported by the Wall Street Journal, sent the bank’s shares sliding about 2% to $80 in afternoon trading.

The examination comes four years after Wells Fargo unveiled a $210 million push aimed at narrowing racial gaps in homeownership, including a Special Purpose Credit Program tied to mortgage refinancing.

Wells said in 2022 that the effort would begin by locating black borrowers in its servicing portfolio who might qualify for refinancing assistance.

It set aside $150 million for reduced rates and other refinancing costs, along with $60 million in grants intended to support homeowners of color.

The Biden-era policy came in the wake of a Bloomberg report finding Wells turned down half of all refinancing applications by black families in 2020.

Back in 2017, the bank committed to providing $60 billion in mortgages intended to help create at least 250,000 African-American homeowners by 2027.

Wells Fargo shares slipped after reports that HUD is examining whether the bank’s minority-focused mortgage programs violated fair-lending laws. Google Market But recent years have seen the feds’ stance on race-conscious lending shift dramatically.

HUD said in 2021 that Special Purpose Credit Programs complying with federal lending requirements generally did not violate the Fair Housing Act. A year later, it joined seven other agencies in encouraging creditors to explore them.

That position changed earlier this year.

A Consumer Financial Protection Bureau rule effective July 21 prohibits for-profit Special Purpose Credit Programs from using race, color, national origin or sex as an eligibility criterion.

HUD and six other agencies withdrew the earlier federal guidance the following month.

Federal housing officials are examining Wells Fargo mortgage programs aimed at boosting minority homeownership. David – stock.adobe.com The policy reversal could complicate scrutiny of initiatives created under the previous framework, particularly if Wells contends that its actions were based on the government’s earlier guidance.

It was not immediately clear whether the HUD probe has advanced to a formal Fair Housing Act complaint.

The agency is looking at comparable efforts by other banks, potentially broadening the issue beyond Wells Fargo and forcing lenders to reassess programs that explicitly incorporate race into mortgage eligibility or pricing.

“The Fair Housing Act forbids racial discrimination in housing. It does not say: discriminate, so long as the discrimination is called a ‘special purpose credit program’ and justified as advancing ‘racial equity in homeownership,’” Assistant Secretary for Fair Housing and Equal Opportunity Craig Trainor said in a statement.

“No matter an institution’s size, wealth, or power, if there is reasonable cause to believe it has violated Americans’ civil rights, the Trump Administration will hold it to account.”

The Post has sought comment from HUD. A Wells Fargo spokesperson declined to comment.

Wells Fargo says customers can now personalize debit cards within its mobile banking app. The Mobile Card Design Studio lets customers upload personal photos from their phone to create personalized cards, the bank said in a Tuesday (Oct. 6) news release.

Both big banks raised dividends this summer and trade at similar valuations, but one has a stronger case for retirees seeking reliable income over the long haul. The difference comes down to what happened in 2020 and a capital ratio…

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Retirement investors choosing between Wells Fargo (NYSE:WFC | WFC Price Prediction) and Bank of America (NYSE:BAC) face one question: which big-bank dividend belongs in an income portfolio? Both raised payouts this summer and trade near 10x to 11x forward earnings. Wells Fargo fell 8.91% and Bank of America 13.1% over the past month. Bank of America comes out ahead.

Current Income: Wells Fargo Pays More per Dollar Invested Wells Fargo lifted its quarterly dividend to $0.50 from $0.45, putting the forward annualized payout at $2 per share, or about 2.44% yield at $81.95. Bank of America raised its payment to $0.32 from $0.28, for a forward payout of $1.28 and a yield near 2.35% at $54.47.

Both payouts are covered equally well. Dividends took about 27% of Wells Fargo’s $6.96 EPS and about 27% of Bank of America’s $4.35. Bank of America’s raise was roughly 14% against Wells Fargo’s 11% increase. Wells Fargo wins on yield, with its quarterly payout climbing from $0.10 in early 2021 to $0.50 today.

Dividend Reliability and Capital: Bank of America Earns a Retiree’s Trust Wells Fargo paid $0.51 per quarter through May 2020, then $0.10 starting in August 2020. Bank of America kept paying $0.18 and raised it to $0.21 in September 2021. Bank of America’s payout sat at $0.01 from 2009 through 2014, while Wells Fargo paid $0.05 in several 2009 and 2010 quarters. In 2020, Bank of America held its dividend and Wells Fargo cut.

Bank of America carries a deeper capital cushion. Its CET1 ratio was at 11.2% against a 10% minimum. Wells Fargo reported 10.3%, inside its 10% to 10.5% target range. Wells Fargo’s credit is better, with net charge-offs of 34 basis points versus Bank of America’s 0.47%. A dividend that held through 2020 and a larger capital buffer matter most for reliable payouts.

Valuation and Analysts: Bank of America’s Growth Comes Cheaper Wells Fargo’s forward P/E is 10 versus 11 for Bank of America. But Bank of America’s PEG ratio is 0.846 while Wells Fargo’s is 1.385. Bank of America’s second-quarter EPS rose 34% to $1.21, its fifth straight beat. Wells Fargo’s rose 25% to $2.

Analysts favor Bank of America. It has 6 strong buy and 15 buy ratings against 3 holds, with a consensus target of $67.33 suggesting about 24% upside. Wells Fargo has 4 strong buys, 13 buys and 9 holds, with a $99.20 target suggesting about 21% upside.

Verdict: Bank of America Is the Stronger Retirement Dividend Bank of America leads in two of three categories and offers the stronger dividend profile for retirement portfolios. Its dividend held through 2020 and its CET1 buffer is larger, worth more to an income investor than Wells Fargo’s slightly higher yield. It pairs durability with faster earnings growth at a lower growth-adjusted price. CEO Brian Moynihan said “capital generation and capital returns to investors remain strong.”

Wells Fargo fits a different retiree: one needing maximum current income and steadier stock. Its beta is 0.952 versus 1.214 for Bank of America, and management says the bank is growing its balance sheet after the asset cap was removed. Watch whether Wells Fargo keeps its CET1 inside target range while buying back shares, and whether Bank of America’s net interest income holds up if rates fall.

Contact [email protected] for any questions or corrections.