Wells Fargo has reported a fall in net income at its wealth,
brokerage and retirement division, at $338 million, down $5 million from the second
quarter of this year.

Revenue was $3.0 billion, up 2 per cent from the previous
quarter, however; this was helped by $45 million of gains on deferred
compensation plan investments (offset in expense, compared with $31 million in
losses in second quarter 2012).

(The wealth, brokerage and retirement division of Wells Fargo includes the
Abbot Downing unit that caters to ultra high net worth individuals and
families.)

Excluding deferred compensation, revenue was flat due to
lower net interest income and reduced securities gains in the brokerage
business, partially offset by higher asset-based fees and brokerage transaction
revenue, the US-listed bank said in a statement.

Total provision for credit losses in the division fell by $7
million from the second quarter. The provision in both periods included a $10
million credit reserve release.

For the San Francisco-headquartered bank as a whole, it
reported net income of $4.9 billion, a gain of 27 per cent (annualized) from
the previous quarter; revenue was $21.2 billion, from $21.3 billion in the
previous three months.

The bank had a Tier 1 common equity ratio of 10.06 per cent
under the Basel I standards.