富国银行2025年年度报告

CEO Letter Dear Shareholders, As I reflect on 2025, I am pleased to review a year of important achievement, strategic advancement, and renewed momentum atWells Fargo. Since 2019, the management team has led a transformation of our company. This year we achieved a critical milestone:the Federal Reserve’s lifting of the asset cap in June 2025, a restriction that had constrained our growth since 2018. Their decisionvalidates the exhaustive efforts of my more than 200,000 partners, who have rebuilt Wells Fargo into a more resilient anddisciplined institution focused on serving our customers and delivering sustainable value to you. In addition, multiple consent orders were terminated, and stronger growth in all our core businesses make me proud of our 2025results. These achievements build on the foundational work we have completed over the past several years to strengthen our riskand control framework, enhance operational efficiency, and invest in business resources, technology, and talent. These efforts havenot only helped us satisfy regulatory requirements but have also enabled us to operate more effectively and deliver better results. These results are part of our consistent strategy to simplify the company, improve returns and invest to position the company togrow. We substantially completed our efforts to refocus and simplify the company by exiting or selling 12 businesses, with the lastsale closing on January 1, 2026. We achieved the goal we set after fourth quarter 2020 to increase our return on tangible commonequity (ROTCE)1from 8% to 15% by increasing efficiency, managing capital effectively, and not just protecting importantinvestments to create a faster growing company, but increasing the level of investments to support that growth. I will discuss later in this letter where we are seeing stronger growth, but I want to note that while we are seeing early proof points ofgrowth, we believe that we can deliver stronger results. We continue to have strong conviction that each of our businesses arepositioned to achieve best in class returns and growth. While 2025 was a pivotal year in our transformation, we are even moreexcited about the next chapter. 2025 Summary As 2025 began, there were many unknowns: the potential impacts of new government policies in Washington DC, rising costs,geopolitical risks, and shifts in interest rates all brought questions about how these factors would influence both the economy andour company. In the end, most of what began as uncertainties worked in our favor, thanks to supportive regulatory policies, easinginflation, and steady employment. Consumers entered the year in a strong financial position, and we saw that strength continue. Individuals with greater financialresources made more substantial contributions to economic growth, while those with fewer resources faced ongoing challenges.Overall, consumers continued to spend more year over year, deposit and investment balances grew, and delinquencies and lossesimproved in our loan portfolio. Businesses of all sizes also entered the year in a strong financial position and continued to perform well. They were more restrainedin their willingness to build inventories and invest aggressively while they navigated the impact of inflation and tariffs. Overall, theymanaged their supply chains and their own expense bases and remain in strong financial condition. Our solid results show not only the influence of the economic climate but also the significant steps we have taken to improve WellsFargo. In this letter, I will provide more detail on our key accomplishments in 2025 and provide an overview of our financialperformance at both the company-wide level and across our four primary business segments. I will also highlight our strategicinitiatives that position us for sustained success, discuss our approach to capital returns, and outline the exciting opportunities wesee ahead in 2026 and beyond. Financial Results For the full year, Wells Fargo reported net income of $21.3 billion, representing an 8% increase from 2024. This translated intodiluted earnings per share of $6.26, up 17% from $5.37 the previous year. Our ROTCE1rose to 14.6% from 13.4%, reflecting bothenhanced profitability and significant capital returns to shareholders. Our ROTCE1is a significant improvement from 8% when wefirst set goals after fourth quarter 2020. Total revenue reached $83.7 billion, a 2% increase from $82.3 billion in 2024, driven by acombination of stable net interest income and growth in noninterest income. As a reminder, we operated for the first half of theyear with an asset cap which limited our ability to grow deposits, loans, and other assets that could produce additional income. Net interest income for 2025 was $47.5 billion, relatively flat compared with $47.7 billion in 2024. Noninterest income grew 5% to$36.2 billion from $34.6 billion, driven by higher investment advisory and investment banking fees as well as increased card andd