The wealth and investment management (WIM) unit of Wells Fargo has posted a net income of $512m for the first quarter of 2016, a decline of 3.21% compared to $529m in the year ago quarter.
For the quarter ended 31 March 2015, the division posted revenue of $3.85bn, down 3% compared to $3.97bn in the corresponding quarter of 2015.
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The company said that decline in revenue was driven by lower asset-based fees and brokerage transaction revenue, partially offset by higher net interest income.
The bank’s WIM unit offers a full range of personalized 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.
The WIM unit’s client assets at the end of 31 March 2016 stood at $1.6 trillion, a decline of 2% compared to the year ago period.
Client assets at the wealth management business were $225bn, down 1% compared to the year ago period.
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By GlobalDataAsset under management (AuM) at Wells Fargo Asset Management declined 2% year-on-year to $481bn.
Overall, the banking group posted a net income of $5.5bn for the first quarter of 2016, compared with $5.8bn in the comparable quarter of 2015.
Wells Fargo chairman and CEO John Stumpf said: "Wells Fargo’s first quarter results reflected the benefit of our diversified business model as we managed challenges presented by a volatile operating environment for our industry. We again generated solid growth in the fundamental drivers of long-term value creation: loans, deposits and capital.
"We also completed two important acquisitions from GE Capital, which are great additions to our company and demonstrate the benefit of our strong financial position. We remain focused on meeting the financial needs of our consumer and business customers, and I believe we are well positioned for the future."
