US bank stocks slid Wednesday despite better-than-year-ago results from two of the largest lenders, underscoring a rocky start to 2026 for the sector. Bank of America and Wells Fargo both reported rising fourth-quarter and full-year profits and posted their highest full-year net income in four years. Still, investors punished the shares: BAC and WFC fell after hours as traders parsed the details beneath the headlines. Bank of America delivered fourth-quarter earnings per share of $0.98, beating expectations and up 18% year-over-year. Revenue climbed 7% to $28.4 billion, topping FactSet consensus of $27.76 billion. CEO Brian Moynihan framed the results optimistically, saying consumers and businesses are proving resilient and that he’s “bullish on the U.S. economy in 2026,” while acknowledging risks remain. Wells Fargo’s quarter showed EPS of $1.62, short of the $1.67 analysts expected. Management said results were hit by a $0.14-per-share impact tied to severance costs; the bank recorded a $612 million severance charge for the quarter as it continues periodic workforce reductions. Wells Fargo reported 205,000 employees at the end of December, down roughly 6% from the end of 2024. Year-to-date performance reflects the market’s caution: BAC is down 4.9% and WFC down 4.64%. Wall Street firms have generally maintained a cautious, even bearish, outlook on U.S. bank stocks for the remainder of January. For crypto-focused readers: weakness in traditional financials can pressure broader risk sentiment, potentially spilling over into cryptocurrency markets as investors reassess risk appetite. That said, the banks’ underlying earnings strength suggests fundamentals are mixed—profitability is improving even as one-off charges and macro concerns weigh on near-term stock performance. Read more AI-generated news on: undefined/news

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