SKN | Wells Fargo Targets $50 Billion in Net Interest Income as Lending Growth and Asset Repricing Support Its Outlook

Key Takeaways:

• Wells Fargo reaffirmed its 2026 net interest income guidance of approximately $50 billion, with fourth-quarter NII expected to reach around $13 billion.
• Higher loan and investment securities balances, lower funding costs and fixed-rate asset repricing supported a 5.1% increase in NII during the first nine months of 2026.
• Growth excluding the Markets business was more modest, while rising credit provisions and deposit costs remain important factors in assessing the durability of earnings.

Wells Fargo & Company is approaching the final quarter of 2026 with a clear earnings priority: convert stronger lending activity, balance-sheet growth and asset repricing into sustained net interest income. The bank has maintained its full-year NII guidance of approximately $50 billion, supported by a 5.1% increase during the first nine months to $36.93 billion. The outlook reflects improving operating momentum, although the composition of that growth deserves closer attention than the headline figure alone.

Loan Growth and Asset Repricing Strengthen the Revenue Base

Wells Fargo’s net interest income increased from $35.15 billion to $36.93 billion during the first nine months of 2026. Management attributed the improvement to higher loan and investment securities balances, lower average deposit costs, reduced funding costs, growth in its Markets business and the repricing of fixed-rate assets.

The bank’s balance-sheet expansion provides important context. Average loans reached $1.03 trillion in the third quarter, an 11% increase from a year earlier. Average deposits also rose 11% to approximately $1.48 trillion. Higher balances across commercial, consumer and corporate banking activities have expanded the base from which Wells Fargo generates interest income.

Fixed-rate asset repricing is another important contributor. As existing assets mature or reset at prevailing rates, the bank can potentially improve the income generated by its portfolio. However, the benefit is not uniform: lower interest rates can reduce returns on floating-rate assets, while competition for interest-bearing deposits can increase funding expenses.

Markets Income Explains Part of the Growth Acceleration

A closer examination of Wells Fargo’s figures reveals a distinction between total NII and income generated outside its Markets business. During the first nine months, NII excluding Markets increased approximately 2.1% to $35.52 billion, compared with growth of 5.1% in total NII.

The difference matters. Markets NII reached $1.41 billion, compared with $379 million in the same period of 2025. This contribution reflects the expansion of the Corporate and Investment Banking Markets balance sheet, but Markets income can be more sensitive to market conditions and funding dynamics. The bank’s non-GAAP measure excluding Markets offers a more focused view of income from lending, investing and deposit-raising activities.

Furthermore, Wells Fargo reported that its net interest margin declined year over year during both the third quarter and the first nine months. Growth in lower-yielding Markets assets and interest-bearing deposits contributed to the pressure. Stronger aggregate NII therefore does not necessarily mean that the bank is earning more on every dollar of assets.

The $50 Billion Target Depends on Execution and Credit Discipline

For the fourth quarter, management expects NII of approximately $13 billion, with net interest margin remaining stable compared with the third quarter. The bank anticipates continued benefits from loan and deposit growth, higher investment securities balances and fixed-rate asset repricing. Its full-year noninterest expense outlook remains approximately $55.7 billion.

Credit quality remains another consideration. Third-quarter provisions for credit losses reached $1.03 billion, up from $681 million a year earlier. Wells Fargo attributed the increase largely to higher allowances for commercial and industrial and auto loans as balances expanded. Its allowance for loan losses stood at approximately $14.5 billion at September 30.

For internationally exposed investors and business owners, Wells Fargo’s outlook highlights the importance of separating recurring lending income from more market-sensitive contributions. The $50 billion target would reinforce the bank’s earnings capacity, but the quality of that growth will depend on funding discipline, loan performance and margin stability. The next reporting period will show whether the bank can deliver its guidance while preserving credit standards and capital flexibility. For a confidential discussion regarding US banking exposure and cross-border financial structures, contact our senior advisory team.