Wells Fargo & Company NYSE: WFC) on Tuesday reported first-quarter earnings that came in below Wall Street expectations, despite higher revenue and improved profitability metrics.

The bank posted adjusted earnings of $1.56 per share, missing analysts' estimates of $1.58. Revenue totaled $21.45 billion, also below the $21.77 billion consensus, though it rose 6% from a year earlier, supported by gains in net interest and fee income.

Return on equity improved to 12.2% from 11.5%, while return on tangible common equity increased to 14.5% from 13.6%.

Net Interest And Fee Income Rise

Net interest income increased 5% to $12.09 billion, driven by higher deposit balances, lower deposit costs and improved Markets performance. Growth was also supported by higher loan and securities balances and fixed-rate asset repricing, partly offset by lower interest rates on floating-rate assets.

Noninterest income rose 8% to $9.35 billion, boosted by venture capital investments and higher asset-based fees in Wealth and Investment Management amid stronger market valuations.

Business Segments Show Mixed Performance

Consumer Banking and Lending revenue rose 7% to $9.99 billion, with Consumer, Small and Business Banking up 9% on higher deposit and loan balances and lower deposit pricing. Credit card and auto lending revenue also increased.

Home Lending revenue fell 9%, reflecting lower loan balances and reduced mortgage banking fees tied to weaker servicing income.

Commercial Banking revenue rose 7% to $3.12 billion, supported by higher loan and deposit balances, though partially offset by lower interest rates.

Corporate and Investment Banking revenue increased 4% to $5.28 billion. Banking revenue climbed 11%, while Markets revenue surged 19% on strength across most asset classes. Commercial real estate revenue declined 21%.

Wealth and Investment Management stood out, with revenue rising 14% to $3.87 billion. Net interest income in the segment jumped 24%, while noninterest income gained 11% on higher asset-based fees. Client assets increased 11% to $2.2 trillion.

CEO Cites Economic Resilience

Chairman and CEO Charlie Scharf said the economy remains resilient despite market volatility.

"While markets have been volatile, we still see continued resiliency in the underlying economy, and the financial health of the consumers and businesses we serve remains strong," Scharf said, adding that the effects of higher oil prices may take time to emerge.

Outlook Unchanged

Looking ahead, Wells Fargo expects 2026 net interest income excluding Markets to be about $48 billion, with Markets net interest income around $2 billion. The bank maintained its noninterest expense forecast at approximately $55.7 billion.

WFC Price Action: Wells Fargo shares were down 4.81% at $82.47 at the time of publication on Tuesday, according to Benzinga Pro data.

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