Gold prices steady ahead of Fed decision, Trump’s tariff deadline
SAN FRANCISCO - Wells Fargo & Company (NYSE:WFC) announced Tuesday that it expects its stress capital buffer (SCB) to decrease from 3.8% to the minimum 2.5% following the completion of the Federal Reserve’s 2025 Comprehensive Capital Analysis and Review stress tests.
The Federal Reserve Board will publish Wells Fargo’s final SCB by August 31, 2025. The bank noted that a pending Federal Reserve proposed rule, if finalized as proposed, would result in an expected SCB of 2.6% instead.
Additionally, the Federal Reserve revised Wells Fargo’s 2024 SCB downward to 3.7% from 3.8%, citing corrections of modest errors in loss projections related to corporate and first lien mortgage loans in the 2024 stress test results.
Wells Fargo also announced plans to increase its third quarter 2025 common stock dividend by 12.5% to $0.45 per share from $0.40 per share, subject to approval by the company’s Board of Directors at its July meeting. The bank has maintained dividend payments for 55 consecutive years and has raised its dividend for three consecutive years, with a current yield of 2%.
The bank stated it has capacity to continue repurchasing common stock, which will be assessed as part of its internal capital adequacy framework considering market conditions, regulatory requirements, and risk factors.
Wells Fargo, with approximately $1.9 trillion in assets, provides banking, investment, and mortgage products through its four operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management.
This information is based on a company press release statement.
In other recent news, Wells Fargo has experienced a series of significant developments. The Federal Reserve lifted a seven-year asset cap on the bank, allowing it to expand its balance sheet and potentially increase its earnings. This decision has led S&P Global Ratings to upgrade Wells Fargo’s outlook from stable to positive, reflecting improvements in governance and risk management. Analysts from Raymond James and Piper Sandler have also adjusted their price targets for Wells Fargo stock, raising them to $84 and $85, respectively.
Raymond James continues to maintain a Strong Buy rating, anticipating positive earnings per share revisions due to increased trading and investment banking revenue. Meanwhile, Piper Sandler maintains a Neutral rating, highlighting a cautious approach despite the positive developments. Wells Fargo’s Chief Financial Officer, Mike Santomassimo, noted that consumer loan growth is expected to remain muted, although there are positive signs in investment banking activities. The bank’s profitability has been on the rise, with adjusted preprovision net revenue reaching nearly $30 billion in 2024.
Wells Fargo has also made substantial progress in resolving regulatory issues, terminating several consent orders since 2019. These recent changes are expected to enhance Wells Fargo’s ability to compete and grow its fee-generating businesses.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.