Wells Fargo & Company

Strong Q3 performance; broad revenue growth; returns improving - EPS $1.87, up 13% YoY. - ROTCE increased to 16.3% this quarter (up from 14.7% during first 9 months of 2025; 16.2% over first 9 months this year). - Revenue +2% YoY, with strength across segments: - Wealth & Investment Management +12%, Commercial Banking +6%, Consumer Banking & Lending +5%, Corporate & Investment Banking +3%. - Expenses down modestly: noninterest expense improved, efficiency ratio 63% (down 2 pts YoY). Headcount continued to fall (-2% QoQ, -8% YoY; -30% vs Q2 2020 peak), supporting ongoing operating leverage.

Earnings momentum driven by balance sheet growth and strong credit quality - Loans and deposits: average loans +11% YoY and average deposits +11% YoY. - Consumer checking momentum: 14th consecutive quarter of YoY growth; opened 660k+ new accounts in Q3. - Credit remains resilient despite explicit acknowledgment of future-cycle risk: - Net charge-off ratio 38 bps of avg loans (down from prior year). - Consumer net charge-offs 70 bps (strong). - Commercial 18 bps (stable YoY; up 8 bps QoQ, but still described as controlled). - Management said they do not see signs of broad-based credit deterioration yet; losses are still idiosyncratic.

Net interest income (NII) outlook reaffirmed; Q4 expected to benefit from loan/deposit and repricing—markets is the key offset - Full-year 2026 NII forecast maintained at ~$50B (±$0.5B). - Q4 expected NII ~$13B; NIM stable vs Q3 (company guided NIM aggregate flat, with ex-markets NIM slightly higher). - Drivers for Q4 vs Q3: stronger benefit from loan growth step-up, deposit growth, and fixed-rate asset repricing / higher investment securities balances. - Markets NII is liability-sensitive and may be slightly below ~$2B (≈$1.8B), with the difference largely offset by markets noninterest income.