Wells Fargo faces a federal probe into its race-conscious mortgage initiatives, including a Special Purpose Credit Program tied to refinancing, with HUD framing the matter as a civil rights issue. The regulatory backdrop has shifted against race-based lending, potentially constraining pricing and eligibility rules. The stock fell about 2%, underscoring near-term risk to Wells Fargo's mortgage franchise.
At the Barclays Global Financial Services Conference, Wells Fargo signaled a stronger 2026 loan growth trajectory supported by healthier US spending and stable delinquencies. The bank maintained NII around $50 billion with expenses near $55.7 billion and suggested Q3 NIM would exceed initial expectations. It also forecast mid-single-digit gains in investment banking, markets, and trading, indicating earnings leverage beyond traditional lending.
Wells Fargo is scheduled to report Q2 results with an expected EPS of $1.71 on $21.81B in revenue. Upgraded price targets from Bank of America Securities and UBS reflect improved earnings visibility and a stable dividend profile. A solid print could lift sentiment and push WFC toward the mid-to-high 90s in the near term.
Wells Fargo is set to report Q2 results before the open on July 14, with consensus EPS of $1.71 on about $21.81 billion in revenue. The bank also raised its quarterly dividend to $0.50 from $0.45 on June 24, signaling stronger capital returns. The stock recently advanced about 4% on optimism ahead of the print.
Wells Fargo CFO Mike Santomassimo said net interest income will step up this quarter at an investor conference. The message points to a near-term earnings uplift tied to favorable rate dynamics, though no numeric guidance was provided. The stock could react positively if the magnitude proves material and rates stay supportive, with emphasis on rate trajectory and loan growth.
Wells Fargo Chief Executive Charlie Scharf said the bank expects investment banking and trading revenue to rise mid-teens in the second quarter, signaling a healthier capital markets franchise. The lack of a precise target leaves room for upside if volumes and margins hold, making Q2 results and any follow-on guidance the key near-term catalyst for WFC shares.
