Wells Fargo & Co. (WFC) saw its shares plummet 5.07% during intraday trading on Wednesday following the release of its fourth-quarter financial results, which fell short of analyst expectations.
The bank reported earnings of $1.62 per share, missing the consensus estimate of $1.67, while revenue of $21.29 billion also came in below the expected $21.65 billion. Net interest income, a key metric for banks, rose 4% to $12.33 billion but still missed forecasts of $12.46 billion. The results included $612 million in severance expenses tied to ongoing job cuts.
Further weighing on sentiment, Wells Fargo CFO Mike Santomassimo warned that a proposed 10% cap on credit card interest rates by the U.S. government could significantly reduce credit availability, echoing concerns raised by other major banks. The earnings miss marks a setback for the bank, which had been benefiting from the removal of regulatory constraints in 2025.
