Wells Fargo Auto originations soar 111% YoY

Wells Fargo Auto ’s originations jumped 110.9% year over year in the first quarter as the bank continued to reap benefits from its preferred financier arrangement with Volkswagen . The bank originated $9.7 billion in auto loans in Q1, down 4.9% quarter over quarter , according to Wells Fargo’s April 14 earnings supplement. So far, originations have been mixed in Q1, with Chase Auto reporting a 2.8% YoY decline in originations . Wells Fargo’s “continued strong growth” in auto originations benefited from its May 2025 agreement to act as the preferred lender for Volkswagen and Audi vehicles in the United States, Chief Executive Charles Scharf said on the April 14 earnings call. The agreement will expand to Ducati this year, executives previously said. The growth in auto is also due to the bank’s “methodical return to broad spectrum lending,” Scharf added. Auto outstandings totaled $53.8 billion in Q1, up 29.7% YoY and 6.6% QoQ, according to the supplement. Wells Fargo was the 11th-largest auto lender by outstandings at yearend 2024, according to the latest Big Wheels Rankings data . The average interest rate across auto loans was 5.72% compared with 5.33% in Q1 2025 and 5.7% in Q4 2025, according to the supplement. Auto revenue totaled $295 million, up 24.5% YoY and 4.6% QoQ. Auto revenue climbed due to higher loan balances and auto originations doubling from a year ago, Mike Santomassimo , senior executive vice president and chief financial officer, said during the call. “We expect to see continued growth in the auto portfolio,” he said. “Overall, consumer loans continue to grow throughout the year.” Delinquencies down Credit performance improved in Q1 across Wells Fargo’s auto book, with 30-plus-day delinquencies at 1.26%, down 61 basis points (bps) YoY and 26 bps QoQ, according to the supplement. The rate of auto net charge-offs declined 13 bps YoY to 0.49% and were flat QoQ. The rate of allowance for loan losses for auto loans sat at 1.63% in Q1, up 11 bps YoY and 1 bps QoQ. “Credit performance has remained strong and in line with our expectations,” Scharf said, adding that consumer spending health remains stable despite affordability pressures such as higher gas prices related to the Iran war. “We have seen historically that it often takes consumers several months to reduce their spend levels on other categories to adjust for higher oil prices,” he said. “While we don't know the exact timing, we would expect to see the same [trend in spending] in the second half of the year. We also expect that higher energy prices will impact other goods and services. The duration and severity will be driven by the level and duration of higher oil prices .” Commercial book grows On the commercial front, Wells Fargo’s auto-related commercial commitments tallied $32.5 billion, up 4.6% YoY and 0.9% QoQ, according to the supplement. Outstanding loans came in at $17.2 billion, up 3.9% YoY and 1% QoQ. Meanwhile, the bank is keeping an eye on proposed changes to Federal capital requirements , Santomassimo said. “When these rules are finalized, we will look at what our requirements are,” he said. “We'll have the conversation about how much excess do we want to run now that there's more certainty in some of these things and then make a decision. The trajectory is very favorable for us . We just don't want to get ahead of ourselves.” Shares of Wells Fargo [NYSE:WFC] were trading down 5.7% from market open to $81.70at market close. Wells Fargo has a market capitalization of $251.2 billion. Auto Finance News will present multiple invaluable events for industry professionals in 2026, starting with Auto Finance Summit East and Auto Finance Capital Summit in May. To see event agendas and register, visit autofinance.live .

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Wells Fargo Auto originations soar 111% YoY

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