# Beta Finch Podcast Script: Wells Fargo Q4 2025 Earnings

**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and joining me as always is Jordan. Today we're diving into Wells Fargo's fourth quarter 2025 results, and folks, this is a big one. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN**: That's right, Alex. And what a transformation story this is becoming. Wells Fargo just reported some pretty impressive numbers - net income hit $5.4 billion for the quarter, up 6% year-over-year, with diluted earnings per share at $1.62, up 13%. But the real story here is what's happening behind these numbers.

**ALEX**: Absolutely. Let's start with the elephant in the room that's actually turned into a huge positive - the removal of that Federal Reserve asset cap. Jordan, this has completely unleashed Wells Fargo's ability to grow their balance sheet again.

**JORDAN**: It's like taking the parking brake off a race car, Alex. CEO Charlie Scharf said their assets grew 11% year-over-year, with broad-based loan growth and higher trading assets. They're finally able to use their balance sheet to support customers properly again. And get this - they've had 22 consecutive quarters of headcount reductions, cutting over 25% since Q2 2020, while simultaneously growing the business.

**ALEX**: That's remarkable efficiency. Now, let's talk about their ambitious targets. They're now shooting for a 17-18% return on tangible common equity in the medium term. That's up from their current 15%. But when analysts pressed Scharf for a timeline, he basically said "look, we don't control interest rates or the economy."

**JORDAN**: Yeah, that was one of the more interesting Q&A moments. Steven Chubak from Wolfe Research pushed back, saying other banks do provide timelines. But Scharf held firm - he's clearly learned from overpromising in the past. His approach is essentially "judge us by our results, not our promises."

**ALEX**: Smart approach given their history. Now let's dive into the business segments. Their consumer business is really starting to show momentum. Credit card accounts opened nearly 3 million new accounts in 2025, up 21% year-over-year. Auto business returned to growth with 19% balance growth. Jordan, what stood out to you here?

**JORDAN**: What I found fascinating is how methodical they're being about this growth. Scharf specifically mentioned they're not just chasing growth for growth's sake - they want profitable growth. In auto, they became the preferred financing provider for Volkswagen and Audi. But he emphasized they're focused on "making sure we have the right level of profitability, not just growth."

**ALEX**: That's a mature approach. On the commercial side, they hired 185 coverage bankers over the last two years, with over 60% hired in 2025. They're seeing early success with higher client acquisition and loan growth. But here's where it gets interesting - they're really pushing into investment banking.

**JORDAN**: Right, they've set a goal to be a top 5 U.S. investment bank. They moved up to 8th in M&A rankings in 2025 from 12th in 2024. And Scharf mentioned they're entering 2026 with their deal pipeline "meaningfully greater than it has been at any point in the last 5 years." That's a bold statement.

**ALEX**: Now, let's talk numbers for 2026. They're guiding for net interest income of around $50 billion, up from $47.5 billion in 2025. But here's where it gets complex - they're breaking out their markets business separately now.

**JORDAN**: This is actually really important for investors to understand. They expect markets net interest income to grow to about $2 billion in 2026, but this growth will be partially offset by lower noninterest income. It's essentially a shift in how reve

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