The wealth and investment management (WIM) arm of Wells Fargo has reported a net income of $584m for the second quarter of 2016, marginally down compared to $586m a year ago.
The division posted revenue of $3.92bn, a fall of 1% from $3.97bn during the same quarter in 2015. The company said that the decline in revenue was driven by lower asset-based fees and brokerage transaction revenue, partially offset by higher net interest income.
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Noninterest expense dropped 2% year-on-year to $2.97bn from $3.04bn.
The bank's WIM unit offers a full range of personalised wealth management, investment and retirement products and services to clients across US based businesses including Wells Fargo Advisors, The Private Bank, Abbot Downing, Wells Fargo Institutional Retirement and Trust, and Wells Fargo Asset Management.
Client assets at the wealth management business of the bank at the end of 30 June 2016 were $224bn, stable from a year ago.
Asset under management (AuM) at Wells Fargo Asset Management were $484bn, down 1% from a year ago.
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By GlobalDataOverall, the banking group posted a net income of $5.6bn for the second quarter of 2016, compared with $5.7bn in the second quarter 2015.
Wells Fargo chairman and CEO John Stumpf said: “Wells Fargo's second quarter results demonstrated our ability to generate consistent performance during periods of economic, capital markets and interest rate uncertainty. Compared with a year ago, we had solid growth in loans, deposits and customers, which are our fundamental drivers of long-term value.
“We also improved our efficiency ratio while continuing to reinvest in the franchise. We returned more capital to our shareholders in the quarter and were pleased to have received a non-objection to our 2016 Capital Plan from the Federal Reserve. We remain well positioned to continue to meet the financial needs of our customers.”
