The San Francisco-headquartered banking group reported a broadly stronger set of figures. At its wealth arm, deposit balances fell as clients moved cash to higher yielding alternatives, showing how rising interest rates have prompted changes.

Wells Fargo’s earnings at its wealth and investment management arm, including its private banking services, notched up noninterest income of $1.007 billion, a drop of 7 per cent on a year ago. Noninterest income at this division rose 5 per cent to $2.695 billion, the California-headquartered banking group said on Friday.

Net income fell 17 per cent to $529 million in this division, Wells Fargo said. Total revenue rose 1 per cent to $3.702 billion. Some $10 million has been set aside for credit losses – there was no meaningful figure a year ago. Net interest income fell 7 per cent, as deposit balances fell as clients moved cash to higher yielding alternatives. Loan balances fell, partly offset by the effect of higher interest rates.

Total client assets stood at $1.948 trillion at the end of September, rising 11 per cent over the 12 months to the end of September, Wells Fargo said. 

Wells Fargo’s group net income rose sharply to $5.767 billion in Q3 2023, from $3.592 billion.

The overall Wells Fargo group had a Common Equity Tier 1 ratio – a standard international measure of capital strength – was 11 per cent.