While it's early for 2027 NII guidance, could you provide any initial thoughts on the drivers for next year's NII, considering the Q4 exit rate and the current rate environment?

Mike Santomassimo indicated that the strong Q4 exit rate, higher-for-longer rates, and continued growth in loan portfolios (card, auto, commercial) and interest-bearing deposits are positive drivers for 2027 NII. He noted that the $13 billion Q4 NII is a strong starting point for the next year. “certainly, when you look at the step-off point coming out of Q4, that's a net positive sort of where we are. Rates appear to be either increasing or certainly staying higher for longer than we contemplated not that long ago. So that's a net positive.”

How does a period of sustained higher rates affect customer health and resilience, and how might commercial and consumer loan demand change?

Mike Santomassimo stated that strong wages and employment are offsetting the cumulative impact of higher inflation and rates, maintaining consumer activity levels and credit profiles. Commercial clients have been prudent with leverage. While higher rates impact CRE valuations, broad-based stress is not yet observed. “as long as the employment picture stays pretty strong, like we should be able to keep seeing sort of the strong activity levels and strong performance across the consumer base. And we're just not seeing signs of that changing at this point.”

Could AI agents make it easier to move idle cash to higher-yielding alternatives, thereby reducing deposit inertia for banks with large low-cost deposit bases?

Charlie Scharf dismissed the idea of AI agents causing mass movement of deposits, stating that high-rate alternatives already exist and consumers are unlikely to give unilateral power to agents for such decisions. He emphasized that customers keep money for primary payments and services, not just maximizing savings, and that scale matters for banks in leveraging AI for customer service and efficiency. “The idea that consumers are going to give the power to an agent to act on their behalf unilaterally and move money around institutions that they don't know... I think it's a long ways away.”

WFC

Wells Fargo (WFC) Q3 FY26 earnings call: guidance and Q&A

Earnings call· Sep 2026 (Q3 FY26)· Financials· Oct 13, 2026

Source: earnings call transcript

Executive summary

Wells Fargo Q3 FY26 — Strong Growth Across Businesses and Improving Returns

Wells Fargo delivered broad-based growth and improved profitability in Q3 FY26, driven by strong loan and deposit expansion across segments and disciplined expense management. The company continues to invest in strategic areas like AI and digital payments, while maintaining a focus on credit quality and capital flexibility. Management expressed confidence in continued return trajectory towards its long-term targets, balancing growth with risk management in a dynamic macroeconomic environment.

Highlights

Earnings per share grew to $1.87, up 30% year-over-year.
Return on Tangible Common Equity (ROTCE) increased to 16.3% in Q3 FY26, up from 14.7% in the first 9 months of FY25.
Average loans and deposits both grew 11% year-over-year.
Wealth and Investment Management revenues grew 12%, Commercial Banking grew 6%, and Consumer Banking and Lending grew 5%.
Non-revenue-related expenses declined 4% year-over-year, contributing to an improved efficiency ratio of 63%.

Concerns

Noninterest income declined 1% year-over-year, primarily due to lower trading gains and equity securities gains.
Markets revenue was down modestly year-over-year, impacted by a slowdown in the last several weeks of the quarter due to sharp interest rate movements.
Commercial net loan charge-offs increased 8 basis points from Q2 FY26 to 18 basis points.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Net Interest Income	$50 billion, plus or minus high materiality	FY26	High
Q4 2026 Net Interest Income	approximately $13 billion high materiality	Q4 · FY26	High
Q4 2026 Net Interest Margin	stable from the third quarter medium materiality	Q4 · FY26	High
Full-year 2026 Noninterest Expense	approximately $55.7 billion high materiality	FY26	High
CET1 Ratio Target Range	10% to 10.5% high materiality	Ongoing	High
Basel III Endgame RWA Impact	decrease by approximately 7% high materiality	Post-finalization	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Consumer Banking and Lending Solid revenue growth while reducing expenses, with strong momentum in primary checking accounts and business banking. Growth focused on customers with deep existing relationships, maintaining credit discipline. Primary checking accounts: 14th consecutive quarter of YoY growthPremier Client assets: up 10% YoYPremier bankers and financial advisers: double-digit growth YoYBusiness banking checking account openings: up 9%Business banking credit card openings: up 61%Auto originations: grew 15% YoYAuto average balances: up 31%	—	5%	—	ROTCE over 32%
Wealth and Investment Management Strong results driven by increased client assets and loan balances, supported by technology investments and expanded investment capabilities. Fourth quarter results will reflect October 1 market valuations. Client assets: $2.5 trillion (up 11% YoY)Average loan balances: increased 16% YoYAlternative product offerings: increased over 30% this year	—	12%	—	—
Corporate and Investment Banking Growth in banking driven by investment banking, M&A, and underwriting fees, reflecting strengthened client coverage and market share gains. Markets revenue was impacted by challenging conditions late in the quarter, but equities performed strongly. Banking revenue: up 8% YoYInvestment banking revenue: up 10% YoYM&A revenues: grew 30%Equity capital markets underwriting fees: grew 33%Investment-grade underwriting fees: grew 33%Equity capital market share: 3.9% (up 84 bps)Rank in announced U.S. M&A volume: #6 (up from #9 YoY)Markets revenue: down modestly YoYEquities revenue: up 21% YoYYear-to-date Markets revenues: increased 14% YoY	—	3%	—	—
Commercial Banking Strong balance sheet growth driven by client acquisition and deepening existing relationships. Deposit gathering initiatives attracted new and existing clients while maintaining pricing discipline. Increased capture of investment banking and markets activities. Average loans: increased 10% YoYAverage deposits: increased 16% YoYGross fees from investment banking and markets activities: 25% higher YoY	—	6%	—	Efficiency ratio improved to 43% (from 48% YoY)

WFC operating KPIs by quarter

WFC operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	This call Sep 2026 Q3 FY26	Change vs prior quarter
Common equity tier 1 ratio (CET1)	11.1% Our capital position remains strong, and our CET1 ratio of 11.1% continued to be well above our CET1 regulatory minimum plus buffers of 9.8%. Source: earnings call transcript	11.1% Our capital position remains strong, with our CET1 ratio stable at 11.1%, well above our CET1 regulatory minimum plus buffers of 9.8%. Source: earnings call transcript	11.1% We maintained our strong capital position with our CET1 ratio at 11.1%, well above our current CET1 regulatory minimum plus buffers of 9.7%. Source: earnings call transcript	11% We maintained our strong capital position with our CET1 ratio at 11%, well above our new CET1 regulatory minimum plus buffers of 8.5%, which became effective in the fourth quarter. Source: earnings call transcript	10.6% Our capital levels remained strong with our CET1 ratio at 10.6%, down from the third quarter but well above our CET1 regulatory minimum plus buffers of 8.5%. Source: earnings call transcript	10.3% Our capital levels remained strong with our CET1 ratio of 10.3%, within our stated 10% to 10.5% target range and well above our CET1 regulatory minimum plus buffers of 8.5%. Source: earnings call transcript	10.3% Our capital levels remained strong with our CET1 ratio at 10.3% within our stated 10% to 10.5% target range and well above our CET1 regulatory minimum plus buffers at 8.5%. Source: earnings call transcript	10% Our capital levels remained strong with our CET1 ratio at 10%, well above our CET1 regulatory minimum plus buffers of 8.5%. Source: earnings call transcript	-0.3 pt
Employees	—	—	212K+ I know this call is for investors, but I want to once again thank the over 212,000 employees at Wells Fargo who all contributed in one way or another to this milestone. Source: earnings call transcript	~211K Our head count has declined from a peak of approximately 276,000 in second quarter 2020 to approximately 211,000 in the third quarter 2025, down 24%, with head count reductions every quarter for 5 years. Source: earnings call transcript	—	—	197K And in the second quarter, our headcount was 197,000, down 79,000 from 6 years ago, 15,000 from last year and 3,500 from last quarter. Source: earnings call transcript	—	—
Return on tangible common equity (ROTCE)	—	—	15% And the only thing I'll just make sure we're clear on is, yes, we had 15% ROTCE in the quarter, but we also recognize that we had the gain in our Merchant Services business. Source: earnings call transcript	15.2% These efforts helped improve our return on tangible common equity to 15.2% in the third quarter. Source: earnings call transcript	—	—	17.7% Our continued focus on improving returns was evident with ROTCE increasing from 15.2% a year ago to 17.7% in the second quarter and 16.1% in the first half of 2026. Source: earnings call transcript	16.3% Our ROTCE increased from 14.7% during the first 9 months of 2025 to 16.2% during the same period this year and 16.3% this quarter. Source: earnings call transcript	-1.4 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
Tokenized deposits	launch	Last month (September 2026)
AI-powered tool for financial advisers	launch	—
Stablecoin issuance company	launch	Beginning in the first half of 2027

Deals & partnerships

Volkswagen and Audi Relationship for auto originations

Relationship established a little over a year ago, contributing to auto business growth.

20 other international financial institutions Establishing a new company to issue stablecoins

Collaboration to issue stablecoins, with an expected launch in the first half of 2027.

Risks & headwinds

Sticky inflation and higher interest rates Ongoing

Inflation and higher interest rates continue to be headwinds

Mitigation:Strong labor markets and wage growth, business investment, productivity investments, infrastructure spending and a historic wave of technology-related capital expenditures have proven more powerful than many predicted.

Geopolitical uncertainty Ongoing

Uncertainty persists due to sticky inflation, the conflict in the Middle East, persistent fiscal deficits and volatile energy markets

Volatile energy markets Ongoing

Uncertainty persists due to sticky inflation, the conflict in the Middle East, persistent fiscal deficits and volatile energy markets

AI investment cycle leverage Ongoing

risks given the significant leverage used to finance the build-out and the upward pressure on prices in selected industries and supply chains

Mitigation:Very focused on ensuring understanding of who the lessees are, where the guarantees are, and all different layered risks. Hard limits on what we're willing to do.

Commercial Real Estate (CRE) valuations Longer period of time

higher rates are definitely going to impact valuations in places like commercial real estate

Mitigation:Allowance for credit losses (ACL) for CRE feels very good; not seeing acute issues in the first few weeks.

Unexpected or significant market movement Near-term

unexpected or significant movement could filter through the broader economy

What to watch in Q4 FY26

Q4 Net Interest Income and Margin

Next quarter

Current Q3 NII up 2% QoQ, NIM stable QoQ

Target Q4 NII approximately $13 billion, NIM stable from Q3

Why it matters

NII and NIM trajectory are key drivers of profitability for banks, and meeting guidance indicates effective balance sheet management in a changing rate environment.

Fourth quarter net interest income is expected to be approximately $13 billion and the net interest margin is expected to be stable from the third quarter.

Find out whether WFC delivers this. Inve re-checks your case every morning.

Q&A highlights

Could you elaborate on the drivers for the expected net interest income growth in the fourth quarter, particularly regarding the split between Markets and non-Markets NII, and how it contributes to the full-year $50 billion target?

Mike Santomassimo explained that Q4 NII benefits from higher loan balances, continued deposit growth, and fixed-rate asset repricing. NIM ex-markets is expected to expand. Markets NII is liability sensitive and will see some impact from higher rates, but this will be offset by noninterest income. Full-year Markets NII is expected to be slightly below $2 billion (around $1.8 billion).

“our best guess is on the market's NII that it will be slightly below $2 billion, call it, $1.8-ish billion and then you'll make up for some of it to get in the nonmarket NII to sort of get back to the full year of $50 billion.”

asked by John McDonald · answered by Michael Santomassimo

2 min read 6 chapters

Detailed narrative

Strategic Investments Driving Growth

Wells Fargo's investments in talent, technology, and product offerings are yielding broad-based growth across all operating segments. Consumer Banking and Lending saw its 14th consecutive quarter of year-over-year primary checking account growth, with business banking checking accounts up 9% and credit card openings up 61%. Wealth and Investment Management client assets grew 11% to $2.5 trillion, supported by enhanced technology platforms and alternative product offerings.

Capital Markets Performance and Market Share Gains

The Corporate and Investment Banking segment reported 8% revenue growth in banking, including a 10% increase in investment banking. The company achieved an 84 basis point increase in equity capital market share to 3.9% and improved its rank in announced U.S. M&A volume to #6 from #9 a year ago, reflecting strengthened client coverage and ability to compete.

AI and Digital Innovation

Wells Fargo is actively leveraging AI internally for faster code writing, identifying cyber vulnerabilities, and improving risk management. Externally, AI is used to enhance customer experience, accelerate underwriting decisions, and streamline complaints. The company launched an AI-powered tool for financial advisers and was recognized as #5 globally and #3 in the U.S. in the Evident AI index for banks.

Tokenized Deposits and Stablecoin Initiatives

The company launched tokenized deposits on its proprietary blockchain platform to improve cross-border payments for corporate and commercial clients, enabling faster and more transparent transactions. Wells Fargo is also collaborating with 20 other international financial institutions to establish a new company to issue stablecoins in H1 2027, targeting wholesale, institutional, and retail use cases.

Credit Quality and Macroeconomic Outlook

Credit performance remained strong with a net loan charge-off ratio of 38 basis points, and early-stage delinquencies at historically low levels. While acknowledging risks from sticky inflation, geopolitical uncertainty, and higher interest rates, management noted the resilience of the U.S. economy, supported by strong labor markets, wage growth, and significant technology-related capital expenditures.

Capital Management and Shareholder Returns

Wells Fargo maintained a strong CET1 ratio of 10% and increased its common stock dividend to $0.50 per share while repurchasing $2.5 billion of common stock in Q3. The company targets a CET1 ratio of 10% to 10.5% and anticipates a potential 7% decrease in risk-weighted assets from the finalization of Basel III capital rules, providing flexibility for continued capital returns and growth.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.