Wells Fargo(WFC)2025-04-29 20:44Financial Performance - Total revenue for the quarter ended March 31, 2025, was 4,894 million, down 4% from the previous quarter but up 6% compared to the same quarter last year[10]. - The diluted earnings per common share were 20.149 billion in Q1 2025, primarily due to a 6% decline in net interest income, which fell to 4.9 billion for Q1 2025, a 6% increase from 1.39 from 20,149 million, a decrease of 2% from 932 million, and was nearly unchanged year-over-year[10]. - The provision for credit losses for loans was 926 million in the same period last year[23]. - The allowance for credit losses (ACL) for loans was 84 million from December 31, 2024[23]. - The allowance for credit losses (ACL) is based on management's estimate of expected lifetime credit losses, taking into account various credit metrics and trends[187]. - The ACL for loans is subject to change based on economic conditions and ongoing internal and external examinations[198]. Asset and Loan Performance - Loans outstanding as of March 31, 2025, were 908,182 million, with a net interest margin of 5.96%[30]. - Total loans decreased by 8.828 billion, 4%) and Auto Lending (7,978 million as of March 31, 2025, from 406,664 million as of March 31, 2025, compared to 182,906 million, a 1% rise from the previous quarter[10]. - Common Equity Tier 1 (CET1) ratio under the Standardized Approach was 11.09%, slightly down from 11.19% in the previous quarter[10]. - The total capital ratio was reported at 15.18%, unchanged from the previous quarter[10]. - The Common Equity Tier 1 (CET1) ratio was 11.09%, exceeding the regulatory minimum of 9.80%[20]. Noninterest Income and Expenses - Noninterest income for the first quarter of 2025 was 18 million or 0.2% compared to 13.891 billion, driven by lower operating losses and a reduction in professional services expenses[19]. - Total noninterest expense decreased by 3% to 14,338 million in Q1 2024, primarily due to lower operating losses[39]. - The effective income tax rate for Q1 2025 was 9.6%, a decrease from 17.3% in Q1 2024, influenced by increased discrete tax benefits[44][45]. Customer and Market Metrics - Digital active customers increased by 3% to 36.7 million from 35.5 million year-over-year[60]. - Credit card purchase volume rose by 9% to 39.1 billion in the same quarter of 2024[61]. - Total deposits increased by 4.681 billion (1%) at period-end, reflecting reduced customer migration to higher yielding alternatives[68]. Economic Outlook - The forecasted U.S. unemployment rate is expected to rise from 4.2% in 2Q 2025 to 5.3% by 2Q 2026[196]. - The forecasted U.S. real GDP is projected to be 0.4% in 2Q 2025, with a decline of 0.2% anticipated in 4Q 2025[196]. - The home price index is expected to decrease by 1.8% in 4Q 2025 and by 3.4% in 2Q 2026[196]. - Commercial real estate asset prices are forecasted to decline by 8.9% in 4Q 2025 and by 9.1% in 2Q 2026[196].