Wells Fargo Exceeds Profit Expectations After Lifting Asset Cap

San Francisco, California — Wells Fargo reported a profit exceeding Wall Street estimates for the third quarter of 2025, following the removal of a significant asset cap by U.S. regulators. This cap, which restricted the bank’s growth potential for seven years, was lifted in June, allowing CEO Charlie Scharf to accelerate growth efforts.

For the quarter ending September 30, Wells Fargo earned $5.59 billion, or $1.66 per share, compared to $5.11 billion, or $1.42 per share, a year earlier. Analysts had anticipated earnings of $1.55 per share. The bank’s stock rose by 3% in premarket trading following the announcement.

The revised target for the bank’s return on tangible common equity (ROTCE) now stands at 17% to 18%, up from the previous target of 15%. This optimistic outlook comes as the bank reported a 2% increase in net interest income, totaling $11.95 billion for the quarter.

CEO Charlie Scharf stated, ‘While some economic uncertainty remains, the U.S. economy has been resilient.’ He also mentioned that the financial health of clients continues to be strong.

The recent decrease in interest rates by the Federal Reserve is expected to further enhance banks’ interest income going forward. Wells Fargo’s stronger-than-expected earnings align with the general positive sentiment in the banking sector.

As Wells Fargo continues to move forward in its recovery from past scandals, it faces ongoing scrutiny from regulators. The bank is actively seeking to expand lending and hire more staff, now that the asset cap has been lifted.

This story is still developing, with investors closely watching loan and deposit trends for future growth potential.