The wealth and investment management (WIM) arm of Wells Fargo has posted a net income of $659m for the fourth quarter of 2017, a marginal increase of 1% compared to $653m in the year-ago quarter.
The unit’s revenue for the period ended 31 December 2017 was $4.3bn, up 6% from $4.07bn in corresponding quarter of 2016. The company attributed the rise in revenue to higher asset-based fees, higher net interest income, and higher gains on deferred compensation plan investments.
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 December 2017 totalled $1.9 trillion, a jump of 11% compared to the end of December 2016. Client assets at the wealth management business were $248bn, up 7% compared to last year.
Asset under management (AuM) at Wells Fargo Asset Management were $504bn as at 31 December 2017, a rise of 5% year-on year.
Wells Fargo CEO Tim Sloan said: “The progress we made over the past year was evident in the fourth quarter in higher deposits, loan growth particularly in commercial loans, increased debit and credit card transactions, and record client assets under management in Wealth and Investment Management. While we faced challenges in 2017, we are a much better company today than we were a year ago, and I am confident that this year Wells Fargo will be even better.”
Overall, the banking group registered a net income of $6.15bn for the fourth quarter of 2017, an increase of 17% from $5.27bn in the fourth quarter of 2016. The group’s revenue increased 2% year-on-year to $22.1bn.
Wells Fargo CFO John Shrewsberry added: “Wells Fargo reported $6.2bn of net income in the fourth quarter, which included a net benefit from the Tax Cuts & Jobs Act and a gain on the sale of Wells Fargo Insurance Services, partially offset by litigation accruals.
“Compared with the third quarter we grew both loans and deposits, and our credit performance, liquidity and capital remained exceptionally strong. We returned a record $14.5bn to shareholders through common stock dividends and net share repurchases in 2017, up 16%, and returning more capital to shareholders remains a priority.”