Wells Fargo CEO Warns of Economic Volatility Amid Tariff Uncertainty

Wells Fargo reported a 6% increase in net income for the first quarter of 2025, reaching $4.89 billion, driven by strategic cost-cutting and reduced loan loss provisions. Despite surpassing Wall Street expectations, the bank's net interest income fell by 6% to $11.49 billion due to lower interest rates affecting floating rate assets. CEO Charlie Scharf cautioned about potential economic slowdowns linked to ongoing trade tensions and tariffs, which could lead customers to pause investments. Investment banking fees saw a significant 24% increase, reflecting heightened activity in debt capital markets. CFO Michael Santomassimo noted that customer uncertainty could impact future investments. Overall, Wells Fargo is navigating a complex economic landscape while aiming to stabilize and grow its interest income.