The wealth and investment management (WIM) arm of Wells Fargo has posted a net income of $710m for the third quarter of 2017, a rise of 5% compared to $677m a year ago.
The division’s revenue for the period ended 30 September 2017 was $4.24bn, up 4% from $4.09bn in the same period last year. The company said that rise in revenue was primarily driven by higher net interest income and asset-based fees.
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.
The WIM unit’s client assets at the end of 30 June 2017 totalled $1.9 trillion at the end of September 2017, up 8% from the previous year. Client assets at the wealth management business were $241bn, a 5% increase year-on-year.
Asset under management (AuM) at Wells Fargo Asset Management were $496bn as at 30 September 2017, flat compared to the last year.
Overall, the banking group reported a net income of $4.6bn for the third quarter of 2017, an 18% slump from $5.64bn in the corresponding quarter of 2016. The third quarter figures included a $1bn charge for previously disclosed mortgage-related regulatory investigations. The group’s revenue dipped 2% year-on-year to $21.9bn.
Wells Fargo CEO Tim Sloan said: “Over the past year we have made fundamental changes to transform Wells Fargo as part of our effort to rebuild trust and build a better bank.
“While our financial performance in the third quarter included the impact of a litigation accrual for previously disclosed, pre-crisis mortgage-related regulatory investigations, I am proud of the commitment of our 268,000 team members who put our customers first.
“We saw total average deposit growth; loan growth in our residential mortgage, credit card and subscription finance portfolios; as well as higher assets under management in Wealth and Investment Management.”