Stock Movers Wells Fargo's 4Q Misses; BofA Tops Estimates; Citigroup M&A Fees Surge
Jan 14, 2026
Wells Fargo faced a tough fourth quarter, missing profit estimates due to hefty severance costs. Bank of America celebrated its best fourth quarter ever, boosted by a 23% rise in revenue from equity trading. Meanwhile, Citigroup's dealmakers are catching up with a remarkable 84% surge in financial advisory fees, reaching record levels. Discussions also touched on whether Citigroup's momentum could persist as restructuring efforts unfold. Plus, intriguing insights about Netflix's potential studio sale added an extra layer of excitement.
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Wells Fargo's Earnings Hit By Severance
- Wells Fargo missed profit estimates mainly due to elevated severance expenses tied to a cost-cutting plan.
- The bank's 2025 net income of $21.3 billion trailed analyst expectations of $21.6 billion, signaling constrained near-term earnings.
Watch Management Clues For Job Cuts
- Expect further workforce reductions when management signals higher severance and restructuring.
- Monitor statements about constraints and regulatory caps to anticipate future cost and headcount moves.
BofA Beats Estimates With Trading Strength
- Bank of America's equity trading and net interest income outperformed expectations in Q4 and boosted results.
- Equity trading revenue rose to about $2.02 billion and net interest income reached roughly $15.8 billion, lifting earnings above estimates.