The wealth and investment management (WIM) unit of Wells Fargo has posted a net income of $595m for the fourth quarter of 2015, up 15% compared to $519m in the year ago quarter.
For the quarter ended 31 December 2015, the division posted revenue of $3.95bn, a rise of 1% from $3.91bn a year ago on growth in net interest income, partially offset by lower asset-based fees.
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The unit’s noninterest expense declined 2% to $2.99bn from $3.06bn a year ago due to lower broker commissions, as well as lower non-personnel expense.
Client assets at the wealth management unit for the fourth quarter of 2015 were $225bn, flat compared to the year ago period. The provision for credit losses decreased $14m from the year ago quarter.
The WIM unit’s total assets under management stood at $490bn, down $6bn from fourth quarter of 2014 as equity outflows and lower market valuations were partially offset by fixed income net client inflows.
Overall, the US banking giant posted $5.7bn in net income for the fourth quarter of 2015 stable compared to the corresponding period of 2014.
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By GlobalDataWells Fargo chairman and CEO John Stumpf said: "Full year and fourth quarter 2015 results demonstrated the benefit of our diversified business model as we again generated strong financial results, maintained our risk discipline and continued to invest across the company for future growth.
Wells Fargo chief financial officer John Shrewsberry said: "Compared with the prior quarter, we increased deposits and grew both commercial and consumer loans, while maintaining our credit and pricing discipline.
"Net interest income increased as we benefited from broad-based earning asset growth, and fee income remained diversified. We continued to have strong liquidity and capital levels, and our net payout ratio4 was stable at 59 percent."
