Shares in various US bank stocks fell on Wednesday after reporting their quarterly earnings, continuing a rough start to 2026. Fourth-quarter and full-year profits rose from a year ago for Bank of America (BAC) and Wells Fargo (WFC). Both banking giants also reported their highest full-year net income in four years. Despite the positive update, though, Wall Street responded negatively, sending shares down.

Bank of America’s earnings per share came in at $0.98, ahead of forecasts, while Wells Fargo reported earnings per share of $1.62, shy of forecasts for $1.67. Wells Fargo’s results included a $0.14 impact related to severance costs in the quarter. Additionally, Bank of America (BAC) reported an 18% increase in earnings to 98 cents per share, topping views for 96 cents. Revenue rose 7% to $28.4 billion. Analysts polled by FactSet expected $27.76 billion in revenue.

“With consumers and businesses proving resilient, as well as the regulatory environment and tax and trade policies coming into sharper focus, we expect further economic growth in the year ahead,” said CEO Brian Moynihan. “While any number of risks continue, we are bullish on the U.S. economy in 2026.”

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Meanwhile, Wells Fargo reported a severance charge of $612 million during the quarter. The bank has periodically slimmed down its workforce for the past several quarters. It had 205,000 employees as of the end of December, a 6% decrease from the end of 2024.

YTD, BAC stock is down 4.9%, while WFC is down 4.64%. The US bank stocks have bearish forecasts for the remainder of January, per numerous Wall Street experts.