The wealth and investment management (WIM) arm of Wells Fargo has posted a net income of $714m for the first quarter of 2018, an increase of 7% compared to $665m in the year-ago quarter.
The unit’s revenue for the period ended 31 March 2018 was $4.24bn versus $4.25bn in first quarter of 2017.
The company attributed the decline in revenue to lower gains on deferred compensation plan investments (offset in employee benefits expense), lower net interest income, and lower transaction revenue, partially offset by higher asset-based fees.
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.
The division’s client assets at the end of 31 March 2018 totalled $1.9 trillion, up 4% from a year ago. Client assets at the wealth management business were $242bn, an increase of 2% compared to last year.
Asset under management (AuM) at Wells Fargo Asset Management were $497bn as at 31 March 2018, a rise of 3% year-on year.
Overall, the banking group registered a net income of $5.94bn for the first quarter of 2018, an increase of 5% from $5.63bn in the first quarter of 2017.
The group’s revenue declined 1.4% year-on-year to $21.93bn from $22.25bn in the first quarter of 2017.
Wells Fargo CEO Tim Sloan said: “During the first quarter our team members continued to focus on our vision of satisfying our customers’ financial needs and helping them succeed financially. We also made progress on our priority of rebuilding trust with our customers, team members, communities, regulators, and shareholders.
“The efforts to build a better Wells Fargo during the quarter included continuing to improve our compliance and operational risk management programs, investing in innovative products and services that enhance the customer experience including the roll-out of our digital mortgage application and predictive banking service, and increasing the minimum hourly pay rate for U.S.-based team members.”