Wells Fargo's NII Outlook: Can It Achieve the $50B Target in 2026?

Wells Fargo & Company WFC expects its net interest income (NII) to reach approximately $50 billion in 2026, up from $47.5 billion in 2025. The outlook reflects continued balance-sheet expansion following the removal of the asset cap, along with a favorable loan and deposit mix and fixed-asset repricing.

Over the past three years (ended 2025), the company’s NII expanded at a compounded annual growth rate (CAGR) of 1.8%. The growth trend improved in the first half of 2026, with NII rising 5.2% year over year to $24.4 billion. Management expects stronger NII growth in the second half of 2026, supported by continued balance-sheet expansion and improving loan and deposit trends.

Consumer Banking and Lending (CBL) remains a key contributor to NII growth. The segment generated $15.3 billion of NII in the first half of 2026, accounting for 62.6% of Wells Fargo’s total NII. Growth in consumer lending, particularly auto and credit cards, is supporting earning-asset growth and driving the bank’s NII momentum.

The removal of WFC’s asset cap in June 2025 has 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, a stable interest-rate environment, combined with a favorable balance-sheet mix and fixed-asset repricing, is expected to support WFC’s NII growth through the remainder of 2026. With management expecting stronger growth in the second half, the bank remains on track to reach its approximately $50 billion NII target for 2026.

What Do WFC’s Peers Say About Their 2026 NII Expectations?

The two peers of Wells Fargo are Citigroup Inc. C and The PNC Financial Services Group, Inc. PNC.

Citigroup’s NII increased at a three-year CAGR of 6.2% through 2025, with the uptrend continuing in the first half of 2026. The company continues to witness solid growth in loan and deposit balances. Management expects NII, excluding Markets, to increase 5-6% in 2026, supported by loan growth and stabilizing funding dynamics.

PNC’s NII has been a key contributor to top-line growth, increasing at a six-year CAGR of 6.3% through 2025. The uptrend continued in the first half of 2026, supported by commercial loan growth and a favorable deposit mix. Following strong second-quarter results, management raised its 2026 NII growth guidance to 15-15.5% from 14.5%, supported by robust loan growth, an improving deposit mix and continued repricing of fixed-rate assets.

WFC’s Price Performance, Valuation & Estimates

Shares of Wells Fargo have gained 14.7% in the past year compared with the industry’s growth of 27.4%.

Price Performance

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From a valuation standpoint, WFC trades at a forward price-to-earnings (P/E) ratio of 11.56X, below the industry’s average of 14.24X.

Price-to-Earnings F12M

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The Zacks Consensus Estimate for WFC’s 2026 and 2027 earnings implies year-over-year rallies of 15.5% and 9.5%, respectively. Estimates for both years have been revised upward over the past month.

Estimate Revision Trend

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WFC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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