The wealth and investment management (WIM) division of Wells Fargo has posted a net income of $606m for the third quarter of 2015, up 10% compared to $550m in the year ago quarter.
For the quarter ended 30 September 2015, the division posted revenue of $3.9bn, a rise of 2% from $3.8bn a year ago on growth in net interest income, partially offset by lower gains on deferred compensation plan investments.
Client assets at the wealth management unit were $218bn, a 3% decrease compared to the year ago period.
The WIM unit’s total assets under management reached $480bn, down $4bn from third quarter 2014 as fixed income net client inflows were more than offset by equity and stable value outflows.
Overall, the US banking giant posted $5.8bn in net income for third quarter 2015, compared with $5.7bn for third quarter 2014.
Wells Fargo chairman and CEO John Stumpf said: "Wells Fargo’s strong third quarter results reflected the ability of our diversified business model to generate consistent financial performance in an uneven economic environment while continuing to meet our customers’ financial needs.
"Compared with a year ago, we grew loans, deposits and capital, and returned more capital to shareholders through dividends and share buybacks. Our balance sheet and credit results remained strong and our 265,000 team members continue to focus on helping our customers succeed financially."
Wells Fargo CFO John Shrewsberry said: "Wells Fargo reported a solid $5.8 billion of net income for the third quarter. Revenue increased on both a linked quarter and year over year basis, on growth in both net interest income and noninterest income.
"We generated positive operating leverage in the quarter, as our expenses declined, and we remained within our targeted efficiency ratio range. Our return on equity and return on assets also remained within our targeted ranges, and we increased our net payout ratio5 to shareholders to 60 percent from 54 percent in second quarter."