The West Coast-based bank reported a broadly stronger set of Q2 figures for its wealth management businesses.

The wealth management arm of Wells Fargo, which includes its Abbot Downing business group, reported a 35 per cent year-on-year jump in net income, at $157 million.

Revenue rose by $99 million, or 3 per cent, mainly lifted by net gains from equity securities mainly on lower-than-temporary impairment compared with the second quarter of 2018. (The impairment included a $214 million figure linked to the sale of Wells Fargo Asset Management’s ownership stake in a The Rock Creek Group.)

Non-interest expense dropped by $115 million, or 3 per cent, primarily due to lower operating losses and core deposit and other intangible [item] amortization, partially offset by higher personnel costs, it said.

For the Wells Fargo group as a whole, net income of $6.2 billion, compared with $5.2 billion in the second quarter of 2018. Diluted earnings per share were $1.30, compared with $0.98, it said. The EPS figure beat analysts’ forecasts (CNBC, Refinitiv).

Shares in the California-based bank slipped, however, with reports saying that the lender’s comments on future expenses had been a concern. The bank’s chief financial officer, John Shrewsberry, reportedly said in an earnings call (source: CNBC, other) that the company’s costs look on track to hit the higher end of a previously announced $52 billion to $53 billion range.