Wells Fargo will redeem all 140,400 shares of its Series BB Preferred Stock and the related 3,510,000 depositary shares on March 16, 2026. The redemption price is $25,000 per preferred share and $1,000 per depositary share, totaling approximately $3.51 billion in cash outflow.
The move is part of the bank’s broader capital‑structure optimization strategy that began after the Federal Reserve lifted its asset‑cap restriction on June 3, 2025. By retiring the preferred equity, Wells Fargo reduces its preferred‑equity base, lowers future dividend obligations, and improves its Common Equity Tier 1 (CET1) ratio, freeing capital that can be deployed into core banking activities or returned to shareholders.
The redemption follows a strong Q4 2025 performance, in which the bank reported net income of $5.4 billion and earnings per diluted share of $1.62, up from the prior year. The decision aligns with a pattern of active capital management, echoing the earlier redemption of Series U Preferred Stock in May 2025.
Financially, the $3.51 billion outlay is expected to reduce interest expense and strengthen capital ratios, positioning Wells Fargo to pursue additional share buybacks or dividend increases. The reduction in preferred equity also removes a fixed dividend obligation, improving earnings per share in future periods.
CEO Charlie Scharf has highlighted the asset‑cap removal as a pivotal milestone, noting that “the Federal Reserve’s decision to lift the asset cap marks a pivotal milestone in our journey to transform Wells Fargo. We are a different and far stronger company today because of the work we’ve done.” The preferred‑stock redemption is a concrete step toward realizing that transformation.
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