Wells Fargo lowered its prime rate to 7.00 percent from 7.25 percent, effective October 30 2025.
The cut aligns Wells Fargo’s prime rate with those of JPMorgan Chase, Bank of America, and Citibank, all at 7.00 percent, following a 25‑basis‑point cut expected by the Federal Reserve at the October 29 2025 FOMC meeting.
Wells Fargo’s capital profile remains strong, with a CET1 ratio of 11.1 percent at the end of Q2 2025 and a stress capital buffer projected to decline to 2.5 percent after the 2025 stress tests. The bank maintains capacity to absorb margin pressure while pursuing growth in fee‑based and lending segments.
Net‑interest margin compression is expected as the lower prime rate reduces earnings on loans. Wells Fargo’s net‑interest margin fell to 2.91 percent in June 2025, down from 3.03 percent in Q3 2024. The bank cited higher funding costs, deposit mix changes, and lower loan balances as drivers of margin pressure.
Loan growth remains robust, with Q3 2025 reporting the highest linked‑quarter loan growth in over three years. Mortgage, auto, and line‑of‑credit demand have increased, supporting the bank’s strategy to stimulate loan demand through the rate cut.
Management indicated the rate cut is intended to keep Wells Fargo competitive and support customer demand for credit.
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