Bank of America, Wells Fargo Slip, Citi Pops On Bank Earnings Day 2

Bank of America and Wells Fargo shares fell on the second big bank earnings day of the season, while Citigroup’s stock initially popped before turning lower later in the session. The moves came even though Bank of America beat expectations and Wells Fargo posted higher profit year over year, and despite Citi’s profit drop tied to its Russia exit.​

What happened to each bank

• Bank of America reported Q4 2025 earnings per share of about 0.98 dollars, ahead of analyst estimates of roughly 0.96 dollars, with revenue up around mid‑single digits year over year. Despite the beat, the stock dropped roughly 3–4% on the day as investors focused on cautious net interest income guidance and broader pressure on bank shares.​

• Wells Fargo’s profit rose versus a year earlier, but earnings per share of about 1.62 dollars came in slightly below forecasts, partly due to severance‑related charges. Its shares fell around 4–5% after the report as the miss and expense concerns outweighed solid revenue growth.​

• Citigroup’s net income fell about 13% year over year to roughly 2.5 billion dollars, hurt by a more than 1 billion dollar loss linked to the planned sale of its Russian unit. The stock initially rose on the release but ended down around 2% as investors digested the earnings miss and the impact of the Russia charge.​

Why stocks moved this way

• Investors had already bid up large bank shares into earnings, so even beats from Bank of America were met with selling when guidance and margin outlooks looked less robust.​

• Wells Fargo was penalized for missing EPS expectations and for ongoing cost and regulatory overhangs, despite revenue growth and higher profits.​

• Citi briefly benefited from strength in areas like investment banking and trading, but its profit decline and Russia‑related loss led traders to fade the early gains.​

Broader market context

• On the same day, U.S. indexes finished lower, with banks among the weaker groups as worries about future interest rates, regulation, and net interest margins weighed on sentiment.​

• Executives at all three banks struck an optimistic tone on the 2026 U.S. economic outlook, citing resilient consumer spending and room for growth once regulatory constraints ease, but that did not prevent short‑term stock pressure.​