Wells Fargo makes profit estimates, but the CEO warns the tariffs that could slow the growth

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(Reuters) -Well rose 6% of Fargo’s profit in the first quarter when he received more fees for asset management and investment banking, but his CEO warned that the US -Zölle slowed down economic growth.

The US banks entered into a bullish outlook in 2025, which was supported by a resilient economy, a residual dealmaking and business-friendly statements by the new administration.

However, the optimism dissolved in the past week when President Donald Trump’s fluctuating announcements about tariffs were claimed with regard to inflation that could lead the US economy into a recession.

“We support the willingness of the government to examine the obstacles to fair trade for the United States, although it is certainly associated with such significant measures,” said CEO Charlie Scharf in a statement.

“We expect persistent volatility and uncertainty and are prepared for a slower economic environment in 2025, but the actual result depends on the results and the time of the political changes.”

Nevertheless, the bank confirmed its annual interest income forecast. The bank, based in San Francisco, California, rose by 2%in Premarket trading. This year they fell by 10% at the last end.

The fourth largest net income of the US loan rose to $ 4.89 billion or $ 1.39 per share on Friday. This is compared to 4.62 billion US dollars or $ 1.20 per share in the previous year.

In recent years, Wells Fargo has focused on reducing the costs, fixing regulatory problems and investing in its companies.

As part of a more comprehensive advance, the bank has reduced its main recording to save money and at the same time invested in technology to improve efficiency.

Wells Fargo’s expenditure decreased by 3% to 13.89 billion US dollars in a quarter, compared to a previous year.

The Turbuam tariff has made concerns that more borrowers would make their loans in arrears. However, the credit quality kept in Wells Fargo in the first quarter, so that the bank could reduce the provisions.

The provision of loan losses from Wells Fargo fell to $ 932 million compared to $ 938 million in the previous year.

Investment banking fees rose by 24% to $ 775 million compared to the previous year, which was due to the increased activity of the debt capital markets.

The debt capital markets were a bright spot in an otherwise soft quarter for investment banking. Dealmaking was slowed down when companies had difficulty navigating through Trump’s tariff policy.

Wells Fargo advised 5.65 billion US dollars for Safe Harbor Marinas and Fubos Combination with Walt Disney’s Hulu + Live -TV business under shops every quarter.