Wells Fargo's Profit Rises as Loans and Deposits Grow 11%: What It Says About Borrowers

The bank is lending more and holding more customer money, but it is also setting aside more for loans that may not get repaid.

Wells Fargo reported third-quarter results on Tuesday, Oct. 13, joining the other big banks that open each earnings season. The headline was steady growth: higher profit, more lending and more deposits. Underneath, though, the bank put aside noticeably more money for possible loan losses, a detail worth watching for anyone who borrows or invests.

The headline numbers

Wells Fargo earned $5.95 billion in the quarter that ended Sept. 30, up 6% from $5.59 billion a year earlier. Diluted earnings per share, or profit for each share of stock, rose 13% to $1.87. Profit was lower than the second quarter, when the bank earned $6.4 billion.

Total revenue rose 2% from a year ago to $21.9 billion. Net interest income, the money a bank makes from the difference between what it earns on loans and what it pays on deposits, climbed 5% to $12.5 billion. Expenses fell 1%, helped by an 8% smaller workforce.

CEO Charlie Scharf said the results reflected broad-based growth, higher earnings and stronger returns. He also noted that expenses fell even though costs tied to revenue, such as pay for staff who bring in business, rose 15%.

Lending is growing fast

One of the biggest changes at Wells Fargo is how much it is lending. For years, the bank operated under a federal cap on how large it could grow, a penalty from its fake-accounts scandal. That cap was lifted in 2025, and the effect is visible. Average loans rose 11% from a year earlier to about $1.03 trillion, and average deposits also rose 11% to about $1.48 trillion.

More lending can mean more competition for borrowers, which may help people shopping for mortgages, auto loans or business credit. More deposits give the bank more money to lend.

More money set aside for loan losses

The number to watch is the provision for credit losses, which is money a bank sets aside to cover loans that may go bad. At Wells Fargo it rose 51% from a year ago to about $1.03 billion. Net charge-offs, the loans actually written off, were $983 million, up 3% from a year earlier. That works out to 0.38% of average loans on an annual basis, which is still a low rate by historical standards.

Some of the bigger provision likely reflects simple math: when a bank lends much more, it usually sets aside more to cover that larger pile of loans. But it also comes as inflation runs hotter and interest rates stay high, which can squeeze household budgets.

Wells Fargo also bought back $2.5 billion of its own stock during the quarter. Buybacks reduce the number of shares, which can make each remaining share a slightly bigger slice of the company.

What this means for your wallet

If you bank with Wells Fargo, these results don't change your accounts. Your deposits are protected by FDIC insurance up to the standard limits. If you're shopping for a loan, a bank eager to grow its lending may be more willing to compete for your business, so it may pay to compare offers from several lenders.

The rising loss provisions are a reminder that banks are watching for signs of strain. If your own budget feels tight, it can help to build a small emergency cushion and keep credit card balances low, since high interest rates make carrying debt costly.

For investors, Wells Fargo is part of most broad stock index funds. A single earnings report rarely changes a long-term plan. Focus on diversification and your own time horizon rather than one quarter's headlines.

This article is for education only and is not financial advice. Everyone's situation is different.