Wells Fargo CFO Signals Stability Amid Macro Concerns, Cites Strong Credit Metrics

Wells Fargo’s Chief Financial Officer reiterated confidence in the bank’s credit quality, noting no signs of deterioration across key lending portfolios despite broader economic uncertainty. The remarks come as investors scrutinize resilience in consumer and commercial credit amid shifting interest rate dynamics.

Wells Fargo’s CFO delivered a measured assessment of the bank’s credit outlook during a recent investor call, emphasizing that non-performing loan ratios remain within historical ranges. The bank reported a 0.78% non-performing loan ratio in Q4 2025, unchanged from the prior quarter and below the 1.1% average over the past decade. The absence of rising delinquency trends was underscored by data showing consumer credit card charge-offs at 2.3%, slightly lower than the 2.4% level seen a year earlier. Commercial real estate exposure remains under close monitoring, but portfolio-level metrics indicate minimal stress, with only 0.6% of commercial loans classified as watch-listed—down from 0.9% in early 2024. Despite macroeconomic headwinds such as elevated inflation and persistent labor market pressures, Wells Fargo’s management maintains that underwriting standards have tightened significantly since 2022. This disciplined approach has helped sustain credit quality even as the federal funds rate stands at 5.5%, the highest level in over two decades. Market participants reacted positively to the commentary, with Wells Fargo’s stock rising 1.2% in after-hours trading. Investors appear reassured by the bank’s conservative risk posture and stable earnings performance, which posted a 7% year-over-year increase in adjusted net income for Q4 2025.