(Reuters) – Wells Fargo lowered its forecast on net interest (RNI) for 2025 on Tuesday, while raising an increase in its quarterly profit, the American bank having constituted less provisions to compensate for losses on claims.
The action fell by 2.7% in foreign transactions.
Wells Fargo now says he expects this RNI sound, the difference between what the bank is gaining on loans and what it pays for deposits, almost in line with the level of 2024, or 47.7 billion dollars (40.87 billion euros).
The group said in April to expect its RNI to increase by 1% to 3% in 2025.
Analysts and investors were skeptical about the capacity of Wells Fargo to achieve its RNI objectives after a slow start in 2025.
The group expected a relatively stable RNI during the first half of 2025, with more significant growth during the second half.
Some analysts also expected a reduction in the forecasting of net operating profit, high interest rates in the United States having weighed on the demand of borrowers.
The provisions for losses on debts fell to $ 1.01 billion in the quarter from April to the end of June, against $ 1.24 billion a year ago.
Despite the uncertain economic prospects, consumers and businesses continue to repay their loans, soothing fears that a hardening of American trade policy triggers a recession and does not put the economy in difficulty.
Wells Fargo leaders have already said their efforts to tighten credit in the past two years should help the bank to face a possible economic slowdown.
The Bank based in San Francisco has recently been released from a ceiling on its assets which had lasted for seven years, which should allow it to focus on its growth plans.
The bank has also ended seven regulatory sanctions this year and 13 since 2019. It has a dating from 2018.
The net profit of the fourth American bank amounted to $ 5.49 billion (4.70 euros), or $ 1.60 per share, compared to 4.91 billion dollars, or $ 1.33 per share, recorded a year earlier.
(Written by Arasu Kannagi Basil and Pritam Biswas in Bangalore and Saeed Azhar in New York; Diana Mandia; edited by Augustin Turpin)
Copyright © 2025 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
