Wells Fargo Wealth Management saw revenue fall 2% year-on-year in Q1 2023, from $3,757m to $3,681m.

Net income was also down in comparison to Q1 2022, from $465m to $457m.

Furthermore, deposits for Wells Fargo Wealth Management took a heavy hit and a 32% drop in Q1 2023 compared to 2022, falling from $185.8m to $126.6m

However, net interest income rose 31% year-on-year for the bank. This was attributed to the impact of higher interest rates, offset by lower deposits as customers choose higher yielding alternatives.

In addition, non-interest income was down 11% thanks to a decrease in market valuations.

Wells Fargo in Q1 2023

Net income for the group totalled close to $5bn, a rise year-on-year from the $3,788m.

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Total revenue was also up from $20,729m to $17,728m.

Digitally active customers rose 2% to hit 34.3 million people while mobile active customers increased 4% to reach 28.8 million.

Chief executive Charlie Scharf commented: “We had strong results in the first quarter including revenue growth from both the fourth quarter and a year ago, and we continued to make progress on our efficiency initiatives. Delinquencies and net charge-offs continued to slowly increase, as expected. Our CET1 ratio, which was already strong, increased and we resumed our repurchase program, buying back $4bn in common stock.

“We are glad to have been in a strong position to help support the US financial system during the recent events that impacted the banking industry. Regional and community banks are an important part of our financial system and are uniquely positioned to serve their customers and communities. We believe our own franchise offers many benefits including operating at a broad scale with a large branch network. Our customers benefit from our size and the range of banking services we provide, which helps us build a full relationship with individuals and companies. Our diversified business model, strong capital position, mix of deposits, access to funding sources, and continued focus on financial and credit risk management allow us to support our customers throughout economic cycles.

“Looking ahead, we continue to move forward on our risk and control agenda, which is our top priority. While we have made progress, our work is not done, and we remain focused on completing the work in a timely fashion. At the same time, we are executing on our other strategic objectives, including developing improved products and services to better serve our customers, investing in our communities, and generating appropriate risk-adjusted returns.”