Wells Fargo lowered its prime lending rate to 7.00% from 7.25% effective Oct. 30, 2025.
The cut follows a 0.25‑percentage‑point reduction in the Federal Reserve’s federal funds rate to 3.75%‑4.00% on Oct. 29, 2025, and aligns with prime rates of JPMorgan Chase, Bank of America, Deutsche Bank, and Huntington Bancshares.
The move is intended to maintain competitiveness in a high‑rate environment and support loan demand. It compresses the bank’s net interest margin, which stood at 2.91% as of June 2025, but the bank’s net interest income rose 2% year‑over‑year to $11.95 billion in Q3 2025.
Wells Fargo’s Q3 2025 earnings showed net income of $5.589 billion, up from $5.114 billion in Q3 2024, and diluted earnings per share of $1.66, compared with $1.42 in the prior year. The bank’s four operating segments—Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management—were all impacted by the rate change, with consumer lending volumes expected to rise.
Management emphasized that the rate cut is part of a broader strategy to strengthen fee‑based revenues, improve risk and control environments, and sustain growth in a shifting economic landscape.
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