We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wells Fargo Eyes $50B NII in 2026: What's Fuelling the Optimism?
Read MoreHide Full Article
Key Takeaways
Wells Fargo targets $50B in 2026 NII, with Q4 NII near $13 billion.
WFC's NII rose 5.1% to $36.93B in the first nine months of 2026, driven by loan and securities growth.
Removal of the asset cap and projected mid-single-digit loan and deposit growth support WFC's NII outlook.
Wells Fargo & Company (WFC - Free Report) is poised to sustain its net interest income (NII) growth momentum, supported by expanding loan balances, investment securities growth and fixed-rate asset repricing. Management expects NII of $13 billion for the fourth quarter of 2026 and has reaffirmed its full-year guidance of $50 billion.
Over the past three years (ended 2025), the company’s NII saw a compound annual growth rate (CAGR) of 1.8%. During the first nine months of 2026, WFC's NII increased 5.1% year over year to $36.93 billion. Growth was driven by higher loan and investment securities balances, lower average deposit and funding costs, fixed-rate asset repricing, and Markets business expansion. NII excluding Markets increased 2.1% to $35.52 billion.
WFC's Loan & Deposit Growth Supports NII
Wells Fargo's average loan balances increased 11% year over year to $1.02 trillion during the first nine months of 2026. The rally was driven by higher commercial and industrial lending, auto loans, securities-based lending, and credit card balances, partially offset by declining residential mortgage loans.
Average deposits rose 9% year over year to $1.45 trillion, supported by higher interest-bearing deposits. The expanding deposit base provides funding capacity for continued loan growth and investments in interest-earning assets, supporting the bank's NII outlook.
The Federal Reserve's recent monetary policy tightening could further influence Wells Fargo's interest income trajectory. In September 2026, the Fed raised its benchmark interest rate by 25 basis points to 3.75-4%, aiming to contain elevated inflation.
The removal of WFC’s asset cap in June 2025 further strengthened its ability to expand the balance sheet. With the restriction lifted and the final outstanding consent order closed in early 2026, the bank can pursue loan and deposit growth more aggressively. Management expects average loans to increase at a mid-single-digit rate in 2026, primarily driven by commercial, auto and credit card lending, while average deposits are projected to grow at a mid-single-digit rate across all operating segments. This balance-sheet expansion is expected to support NII by increasing earning assets and strengthening the funding base.
Overall, Wells Fargo's expanding loan portfolio, growing deposits and continued balance-sheet optimization position it to sustain NII momentum. However, the extent of future gains will depend on whether growth in interest-earning assets can outweigh funding-cost pressures.
What Do WFC’s Peers Say About Their 2026 NII Expectations?
The two peers of Wells Fargo are Citigroup Inc. (C - Free Report) and The PNC Financial Services Group, Inc. (PNC - Free Report) .
Citigroup’s NII saw a three-year CAGR of 6.2% through 2025, with the uptrend continuing in the first nine months of 2026. The company continues to witness solid growth in loan and deposit balances. Management expects NII (excluding Markets) to grow in the mid-to-high 6% range in 2026, up from its previous outlook of growth at the high end of 5-6%.
PNC’s NII has been a key contributor to top-line growth, seeing a six-year CAGR of 6.3% through 2025. The uptrend continued in the first nine months of 2026, supported by commercial loan growth and a favorable deposit mix. Management expects 2026 NII to increase 15.5% from the 2025 baseline of $14.4 billion compared with the previously stated 15-15.5% growth.
WFC’s Price Performance & Zacks Rank
Shares of Wells Fargo have gained 16.2% in the past six months compared with the industry’s growth of 5.3%.
View the Zacks #1 Rank List
Image: Bigstock
Wells Fargo Eyes $50B NII in 2026: What's Fuelling the Optimism?
Key Takeaways
Wells Fargo & Company (WFC - Free Report) is poised to sustain its net interest income (NII) growth momentum, supported by expanding loan balances, investment securities growth and fixed-rate asset repricing. Management expects NII of $13 billion for the fourth quarter of 2026 and has reaffirmed its full-year guidance of $50 billion.
Over the past three years (ended 2025), the company’s NII saw a compound annual growth rate (CAGR) of 1.8%. During the first nine months of 2026, WFC's NII increased 5.1% year over year to $36.93 billion. Growth was driven by higher loan and investment securities balances, lower average deposit and funding costs, fixed-rate asset repricing, and Markets business expansion. NII excluding Markets increased 2.1% to $35.52 billion.
WFC's Loan & Deposit Growth Supports NII
Wells Fargo's average loan balances increased 11% year over year to $1.02 trillion during the first nine months of 2026. The rally was driven by higher commercial and industrial lending, auto loans, securities-based lending, and credit card balances, partially offset by declining residential mortgage loans.
Average deposits rose 9% year over year to $1.45 trillion, supported by higher interest-bearing deposits. The expanding deposit base provides funding capacity for continued loan growth and investments in interest-earning assets, supporting the bank's NII outlook.
The Federal Reserve's recent monetary policy tightening could further influence Wells Fargo's interest income trajectory. In September 2026, the Fed raised its benchmark interest rate by 25 basis points to 3.75-4%, aiming to contain elevated inflation.
The removal of WFC’s asset cap in June 2025 further strengthened its ability to expand the balance sheet. With the restriction lifted and the final outstanding consent order closed in early 2026, the bank can pursue loan and deposit growth more aggressively. Management expects average loans to increase at a mid-single-digit rate in 2026, primarily driven by commercial, auto and credit card lending, while average deposits are projected to grow at a mid-single-digit rate across all operating segments. This balance-sheet expansion is expected to support NII by increasing earning assets and strengthening the funding base.
Overall, Wells Fargo's expanding loan portfolio, growing deposits and continued balance-sheet optimization position it to sustain NII momentum. However, the extent of future gains will depend on whether growth in interest-earning assets can outweigh funding-cost pressures.
What Do WFC’s Peers Say About Their 2026 NII Expectations?
The two peers of Wells Fargo are Citigroup Inc. (C - Free Report) and The PNC Financial Services Group, Inc. (PNC - Free Report) .
Citigroup’s NII saw a three-year CAGR of 6.2% through 2025, with the uptrend continuing in the first nine months of 2026. The company continues to witness solid growth in loan and deposit balances. Management expects NII (excluding Markets) to grow in the mid-to-high 6% range in 2026, up from its previous outlook of growth at the high end of 5-6%.
PNC’s NII has been a key contributor to top-line growth, seeing a six-year CAGR of 6.3% through 2025. The uptrend continued in the first nine months of 2026, supported by commercial loan growth and a favorable deposit mix. Management expects 2026 NII to increase 15.5% from the 2025 baseline of $14.4 billion compared with the previously stated 15-15.5% growth.
WFC’s Price Performance & Zacks Rank
Shares of Wells Fargo have gained 16.2% in the past six months compared with the industry’s growth of 5.3%.
Image Source: Zacks Investment Research
WFC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.