The wealth and investment management (WIM) arm of Wells Fargo has posted a net income of $445m for the second quarter of 2018, a fall of 37% compared to $711m reported a year ago.
The bank’s WIM arm 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.
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The division’s revenue for the quarter ended 30 June 2018 was $3.95bn, down 6% from $4.22bn in the corresponding quarter of 2017.
The company attributed the decline in revenue to impairment from sale of Wells Fargo Asset Management’s majority stake in American investment manager RockCreek, lower net interest income and transaction revenue.
The unit’s client assets at the end of 30 June 2018 totalled $1.9 trillion, a 3% rise from the previous year. Client assets at the wealth management business were $238bn, up 1% from a year ago.
Asset under management (AuM) at Wells Fargo Asset Management were $494bn, a rise of 2% from last year.
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By GlobalDataOverall, the banking group posted a net income of $5.19bn for the second quarter of 2018, down 11% from $5.86bn in the same period last year. The group’s revenue dipped 3% year-on-year to $21.6bn.
Wells Fargo CEO Tim Sloan said: “During the second quarter we continued to transform Wells Fargo into a better, stronger company for our customers, team members, communities and shareholders.
“Our progress included making further improvements to our compliance and operational risk management programmes; hiring a new Chief Risk Officer; announcing innovative new products including a digital application for Merchant Services customers and our enhanced Propel® Card, one of the richest no-annual-fee credit cards in the industry; launching our ‘Re-established’ marketing effort, the largest advertising campaign in our history; announcing a new $200bn commitment to financing sustainable businesses and projects; and continuing to move forward on our expense savings initiatives.”
