Wells Fargo’s profit in the first quarter of the year fell by 7% as the bank faced higher costs and a decrease in borrower demand. The bank’s net interest income also dropped by 8% as it paid more to hold customer deposits and experienced a decline in loans. However, adjusted profit came in above analysts’ expectations, boosted by gains in corporate and investment banking. The bank’s shares fell by 1.6% in early trading. Wells Fargo expects its net interest income to decrease by 7% to 9% this year. The bank’s performance highlights the challenges faced by lenders in forecasting net interest income amid market volatility and uncertainty surrounding client behavior. Despite the disappointing results, Wells Fargo’s stock has still outperformed the S&P 500 Banks Index this year.