Wells Fargo’s wealth and investment management (WIM) division has reported a net income of $1.28bn for the third quarter of 2019, a 75% jump from $732m a year ago.
The unit’s total revenue for the July-September quarter stood at $5.14bn, a 22% surge from $4.22bn in the same quarter of 2018.
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The growth in revenue was said to be the result of a $1.1bn gain owing to the IRT business divestiture.
WIM’s client assets at the end of September 2019 totalled $1.9 trillion, a 1% fall from last year. Client assets at the wealth management business dropped 4% year-on-year to $230bn.
Asset under management at Wells Fargo Asset Management were $503bn as of 30 September 2019, a 4% rise from a year earlier.
Group performance hit
Wells Fargo’s net income at a group level plummeted 23% to $4.61bn from $6.01bn. This was said to be largely driven by legal costs linked to its association with the fake accounts scandal.
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By GlobalDataThe scandal, unveiled in 2016, involved the bank’s staff secretly opening unauthorised deposit and credit card accounts to increase sales figures and win incentives in return.
Wells Fargo CFO John Shrewsberry said: “Wells Fargo reported $4.6 billion of net income in the third quarter and diluted earnings per share of $0.92, which included the impact of a $1.6 billion, or $(0.35) per share, discrete litigation accrual for previously disclosed retail sales practices matters, as well as a $1.1 billion, or $0.20 per share, gain from the sale of our Institutional Retirement and Trust business.”
The group’s revenue of $22bn in the third quarter of 2019 was higher than the previous year’s revenue of $21.9bn.
