- Wells Fargo climbed to 7th in 2025 U.S. M&A league tables from 14th, its best ranking since records began in 1980.
- Investment-banking fees jumped about 59% year over year to roughly $725 million in Q4 2024, driven by stronger capital-markets and advisory activity.
- The bank fueled the push by hiring 90+ senior bankers and winning marquee mandates that included large underwriting and bridge-loan commitments.
- Despite the momentum, Corporate & Investment Banking revenue dipped about 3% year over year in Q4 2025, underscoring ongoing macro and competitive headwinds.
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The Wall Street Journal reports that under CEO Charlie Scharf, Wells Fargo has made a deliberate push into higher-value investment banking, reflected in its rise in U.S. M&A rankings from 14th to 7th place in 2025—its highest since league tables began in 1980—with major deal activity contributing to that ascent. Investment banking fees in Q4 2024 were up approximately 59% year-over-year to $725 million. This reflects not just volume growth but a strategic shift: hiring senior talent from major banks (JPMorgan, Morgan Stanley, etc.), creating new leadership roles, and landing mandates on marquee transactions like Netflix’s proposed takeover of Warner Bros., Union Pacific’s acquisition of Norfolk Southern, Cox Communications’ sale to Charter, and Worldpay’s sale to Global Payments.
Financially, while investment banking is doing well, Wells Fargo’s fourth-quarter 2025 earnings show mixed signals. Total revenue is up ~4% YoY to $21.3 billion, net income up roughly 6% to $5.4 billion, with investment banking revenue down ~3% YoY (though up sequentially vs Q3 2025). Meanwhile, net interest income rose ~4%, noninterest income up ~5%, and noninterest expenses shrunk by ~1%. This indicates that while investment banking has been central to the narrative, it is not yet offsetting challenges elsewhere.
Strategically, Wells Fargo’s removal of its asset cap (lifted in June 2025 following regulatory constraints tied to past scandals) is a pivotal enabler: it opens capacity to grow across balance-sheet businesses, including M&A and high-profile underwriting. The hiring of leadership—e.g. Jeff Hogan, Doug Braunstein, Fernando Rivas—signals commitment and sets foundations for scale. However, the firm remains behind the bulge bracket in key metrics, and must contend with macroeconomic headwinds (interest rate volatility, deposit costs), competitive pressure from entrenched players, and execution risks in building culture and domain expertise.
Open questions going forward include:
• Can Wells sustain momentum in investment banking revenue through 2025‐26, especially given softening in some quarters?
• Will bridge loans and large underwriting commitments expose the bank to risk (e.g. credit risk, reputational) if deals fall through?
• How will margin pressure from high deposit costs and net interest spread compression—or tightening lending—affect profitability across its banking segments?
• Can the firm effectively compete with top-tier investment banks not just in advisory deal mandates, but IPOs/equity capital markets and global underwriting?
• As Wells invests heavily in human capital, will return on that investment match expectations?
Supporting Notes
- Wells Fargo rose to 7th place on the U.S. M&A league tables in 2025, up from 14th the prior year, highest ranking since at least 1980.
- In Q4 2024, investment banking fees at Wells Fargo rose ~59% YoY to approximately $725 million.
- The bank played lead roles in major deals: Netflix’s $72 billion bid for Warner Bros. with $29.5 billion in bridge loan commitment; Union Pacific’s acquisition of Norfolk Southern; Cox Communications’ sale; Worldpay’s sale.
- Wells Fargo has added over 90 managing directors in banking in the last three years, recruited senior leaders (Jeff Hogan, Doug Braunstein, Fernando Rivas) to boost its investment banking capabilities.
- In Q4 2025, overall revenue rose 4% YoY to $21.3 billion; net income was $5.4 billion, a ~6% increase.
- Corporate & Investment Banking segment revenue was down ~3% YoY in Q4 2025, though up sequentially from Q3. Return on allocated capital was ~13.8%.
- Total noninterest expense dropped ~1% YoY in Q4 2025; noninterest income rose ~5%.