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 Expects 2026 NII to Reach $50B: What's Fueling Growth?
Read MoreHide Full Article
Key Takeaways
WFC projects $50B in 2026 NII, reflecting renewed balance sheet growth after asset cap was lifted.
WFC expects mid-single-digit loan and deposit growth, with markets -related NII rising to $2B by 2026.
WFC's expense discipline and stabilized funding costs support sustained NII momentum in 2026.
Wells Fargo & Company (WFC - Free Report) has outlined a confident outlook for its core earnings power, projecting total net interest income (NII) of $50 billion for 2026. The outlook underscores the bank’s renewed growth momentum following the lifting of its $1.95-trillion asset cap in June 2025 and reflects management’s ability to capitalize on a favorable operating environment. A notable component of this outlook is the expected rise in markets-related NII, which will likely grow to $2 billion by 2026.
2026 NII Expectation
Image Source: Wells Fargo & Company
Wells Fargo’s 2026 target is built on a solid foundation. Over the past several years, the bank has delivered consistent improvement in net interest income, posting a four-year compound annual growth rate (CAGR) of 7.5% through 2025. This growth has been driven by steady loan expansion, disciplined deposit pricing and active balance sheet management, even amid volatile interest rate conditions.
Crucially, the lifting of Wells Fargo’s long-standing asset cap removes a major structural constraint. With the balance sheet now free to expand, the bank can once again compete more aggressively for loan and deposit growth. Management expects average loans and deposits in the fourth quarter of 2026 to increase year over year at a mid-single-digit rate, reinforcing confidence in sustained balance sheet expansion. Also, the Federal Reserve rate cuts stabilized funding costs, which will aid NII growth.
Additionally, the bank continues to streamline operations, invest in technology and eliminate inefficiencies accumulated during years of regulatory remediation. As these initiatives take hold, operating expenses are expected to remain well-controlled. Lower costs improve the incremental profitability of balance sheet growth, ensuring that rising NII translates more directly into higher earnings and returns for shareholders.
Hence, Wells Fargo’s balance sheet acceleration, expense discipline and focus on operational efficiency position it for continued, positive NII momentum in 2026.
How Are WFC’s Peers Likely to Fare in Terms of NII?
Two of the closest peers of Wells Fargo are Bank of America (BAC - Free Report) and Citigroup (C - Free Report) .
Bank of America projects a 5-7% year-over-year increase in NII for 2026, after registering 7.2% growth in 2025. The outlook reflects the company’s ability to leverage a favorable rate environment, technological efficiency and a diversified business model. Bank of America’s NII has closely tracked interest rate cycles. The bank saw steady NII growth during 2018-2019 amid Fed rate hikes, followed by a sharp decline in 2020-2021 when rates fell to near zero. As rates rose again from 2022 onward, NII rebounded sharply, driven by asset repricing, robust loan demand and disciplined funding management.
Citigroup projects 2026 NII to rise 5-6% year over year. In 2025, its NII rose 11% from the year-ago period. The company’s NII outlook remains favorable, supported by a stable interest rate environment and solid balance sheet trends. Additionally, Citigroup’s broad geographic reach and well-diversified business model position it to navigate shifting economic and interest rate cycles effectively. These factors enhance its capacity to sustain NII growth in the upcoming period.
WFC’s Price Performance, Valuation & Estimates
Shares of Wells Fargo have gained 17.1% in the past year compared with the industry’s growth of 30.3%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, WFC trades at a forward price-to-earnings (P/E) ratio of 12.46X, below the industry’s average of 14.83X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for WFC’s 2026 and 2027 earnings implies year-over-year rallies of 12.3% and 11.9%, respectively. Estimates for both years have been revised upward over the past seven days.
Image: Bigstock
Wells Fargo Expects 2026 NII to Reach $50B: What's Fueling Growth?
Key Takeaways
Wells Fargo & Company (WFC - Free Report) has outlined a confident outlook for its core earnings power, projecting total net interest income (NII) of $50 billion for 2026. The outlook underscores the bank’s renewed growth momentum following the lifting of its $1.95-trillion asset cap in June 2025 and reflects management’s ability to capitalize on a favorable operating environment. A notable component of this outlook is the expected rise in markets-related NII, which will likely grow to $2 billion by 2026.
2026 NII Expectation
Image Source: Wells Fargo & Company
Wells Fargo’s 2026 target is built on a solid foundation. Over the past several years, the bank has delivered consistent improvement in net interest income, posting a four-year compound annual growth rate (CAGR) of 7.5% through 2025. This growth has been driven by steady loan expansion, disciplined deposit pricing and active balance sheet management, even amid volatile interest rate conditions.
Crucially, the lifting of Wells Fargo’s long-standing asset cap removes a major structural constraint. With the balance sheet now free to expand, the bank can once again compete more aggressively for loan and deposit growth. Management expects average loans and deposits in the fourth quarter of 2026 to increase year over year at a mid-single-digit rate, reinforcing confidence in sustained balance sheet expansion. Also, the Federal Reserve rate cuts stabilized funding costs, which will aid NII growth.
Additionally, the bank continues to streamline operations, invest in technology and eliminate inefficiencies accumulated during years of regulatory remediation. As these initiatives take hold, operating expenses are expected to remain well-controlled. Lower costs improve the incremental profitability of balance sheet growth, ensuring that rising NII translates more directly into higher earnings and returns for shareholders.
Hence, Wells Fargo’s balance sheet acceleration, expense discipline and focus on operational efficiency position it for continued, positive NII momentum in 2026.
How Are WFC’s Peers Likely to Fare in Terms of NII?
Two of the closest peers of Wells Fargo are Bank of America (BAC - Free Report) and Citigroup (C - Free Report) .
Bank of America projects a 5-7% year-over-year increase in NII for 2026, after registering 7.2% growth in 2025. The outlook reflects the company’s ability to leverage a favorable rate environment, technological efficiency and a diversified business model. Bank of America’s NII has closely tracked interest rate cycles. The bank saw steady NII growth during 2018-2019 amid Fed rate hikes, followed by a sharp decline in 2020-2021 when rates fell to near zero. As rates rose again from 2022 onward, NII rebounded sharply, driven by asset repricing, robust loan demand and disciplined funding management.
Citigroup projects 2026 NII to rise 5-6% year over year. In 2025, its NII rose 11% from the year-ago period. The company’s NII outlook remains favorable, supported by a stable interest rate environment and solid balance sheet trends. Additionally, Citigroup’s broad geographic reach and well-diversified business model position it to navigate shifting economic and interest rate cycles effectively. These factors enhance its capacity to sustain NII growth in the upcoming period.
WFC’s Price Performance, Valuation & Estimates
Shares of Wells Fargo have gained 17.1% in the past year compared with the industry’s growth of 30.3%.
Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, WFC trades at a forward price-to-earnings (P/E) ratio of 12.46X, below the industry’s average of 14.83X.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for WFC’s 2026 and 2027 earnings implies year-over-year rallies of 12.3% and 11.9%, respectively. Estimates for both years have been revised upward over the past seven days.
Estimate Revision Trend
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.