Here is a summary of financial results from the main wealth management houses in North America.

Below is a summary of the private banking and wealth management second quarter 2015 results of firms covered by this publication in recent weeks. Not all of them are strictly comparable since some of the institutions are stand-alone institutions; others are part of larger organizations. Some of this information may be subsequently adjusted or revised. 

JP Morgan
It logged net income of $6.8 billion in the three months to end-September, a 22 per cent year-on-year increase, while net revenue fell 6 per cent to $23.5 billion. Within its asset management arm, JP Morgan said net income fell 19 per cent year-on-year at $475 million, while net revenue fell 5 per cent to $2.9 billion. Net interest income was $633 million, up by 1 per cent as loan balances increased. Non-interest revenue was $2.3 billion, down by 7 per cent, affected by the sale of the bank's retirement planning services business in 2014, lower transactional revenue and lower valuations of seed capital investments. Assets under management stood at $1.7 trillion, unchanged on a year ago, because lower market levels offset the effect of net inflows to long-term and liquidity products.

Bank of America Merrill Lynch
Net income at the global wealth and investment management division stood at $651 million at the end of March, down 11 per cent compared to $729 million a year earlier. The decrease was due to the lower interest rate environment, lower transactional volumes, lower mutual fund volumes and higher expenses. GWIM revenue of $4.5 billion was also down slightly, by 1 per cent. However, client balances of $2.51 trillion were up year-on-year by $114 billion, and quarter-on-quarter by $12 billion. Asset management fees of $2.1 billion were also up on the prior year by $184 million, or 10 per cent.

Morgan Stanley
Morgan Stanley Wealth Management reported pre-tax income from continuing operations of $824 million at end-September 2015, up from $800 million a year ago but down from $885 million on the prior quarter. Morgan Stanley said revenues from wealth management in Q3 2015 were $3.6 billion, compared with $3.8 billion a year ago, and essentially flat on the second quarter of this year.

Wells Fargo
Net income at the wealth and investment management arm ofWells Fargo rose by 10 per cent from the third quarter of 2014 to reach $606 million at end-September of this year. WIM – previously reported as wealth, brokerage and retirement – net income is also up by $20 million, or 3 per cent, on the previous quarter. Revenue of $3.9 billion at this business unit increased by $73 million, or 2 per cent, from a year ago, but is down by 2 per cent on the previous quarter. Wealth management client assets of $218 billion were down 1 per cent year-on-year. WIM serves clients through Wells Fargo Advisors, The Private Bank, Abbot Downing (UHNW), Wells Fargo Institutional Retirement and Trust, and Wells Fargo Asset Management.

Goldman Sachs
Net revenues from investment management were $1.42 billion for the third quarter of 2015, which is 3 per cent lower than a year ago and 14 per cent lower than the prior quarter. The year-on-year dip in net revenues from investment management was due to lower incentive fees, partially offset by higher transaction revenues. During the third quarter, Goldmans' total assets under supervision in investment management rose by $6 billion to $1.19 trillion, however.

Citigroup 
Third-quarter private banking revenues at Citigroup rose 8 per cent from a year ago to $715 million at the end of September 2015. The increase was driven by strong growth in managed investments revenue, as well as higher loan and deposit balances. Private banking revenues were down by 4 per cent, however, on the prior quarter's reading of $746 million. Net income at Citigroup soared by 62 per cent year-on-year to $4.3 billion for Q3 2015, or $1.35 per diluted share, on revenues of $18.7 billion. This is up from net income of $2.8 billion, or $0.88 per diluted share, on revenues of $19.7 billion for Q3 2014.

Northern Trust 
The firm reported third quarter net income per diluted common share of $0.96, compared to $0.84 in the third quarter of 2014 and $1.10 in the second quarter of 2015. Net income was $234.6 million, compared to $204.5 million in the prior-year quarter and $269.2 million in the prior quarter. Return on average common equity was 10.9 per cent, compared to 10.1 per cent in the prior-year quarter and 12.8 per cent in the prior quarter.

Trust, investment and other servicing fees were $749.1 million, up $30.9 million, or 4 per cent, from $718.2 million in the prior-year quarter, primarily reflecting new business. Assets under custody and assets under management are the primary drivers of the Corporation’s trust, investment and other servicing fees.

BNY Mellon
Revenue at BNY Mellon Investment Management was $929 million for the quarter ended 30 September, down by 6 per cent both year-on-year and sequentially. The yearly fall primarily reflected the unfavourable impact of a stronger US dollar, and both dips also reflect seed capital losses, lower equity market values and net outflows, partially offset by higher net interest revenue, the firm said. BNY Mellon's investment management business provides investment management services to institutional and retail investors, as well as investment management, wealth and estate planning and private banking solutions to high net worth individuals and families, and foundations and endowments.

Assets under management stood at $1.63 trillion at end-September - unchanged year-over-year and down 4 per cent sequentially. Higher market values, the Cutwater acquisition and net new business offset the unfavorable impact of a stronger US dollar year-on-year. The sequential decrease was primarily due lower equity market values.

Royal Bank of Canada
Wealth management net income was C$255 million ($190.7 million) for the fourth quarter of 2015, down C$30 million, or 11 per cent, compared to last year. The decline in wealth management income was due mainly to lower transaction volumes, driven by unfavorable market conditions and restructuring costs of C$46 million ($38 million after tax), which was largely related to its US and international business, including the sale of RBC Suisse. 

Wealth management net income was also down C$30 million – 11 per cent – on the previous quarter, due primarily to the same restructuring costs as well as lower fee-based client assets and lower transaction volumes, again driven by unfavorable market conditions.

Bank of Montreal
Net income from wealth management was C$243 million ($182 million) for the final quarter of 2015, up C$18 million, or 8 per cent, from a year ago. Assets under management and administration grew by $70 billion, or 9 per cent, from a year ago to $864 billion, driven by favorable foreign exchange movements and market appreciation, BMO said.

Toronto Dominion
The bank announced its financial results for the fourth quarter ending October 31, 2015. Fourth quarter adjusted earnings of C$2.2 billion rose 17 per cent over the same quarter last year, with strong performances from all business segments.

Raymond James 
The firm reported record quarterly net revenues of $1.34 billion and quarterly net income of $129.2 million, or $0.88 per diluted share, for the fiscal fourth quarter ended September 30, 2015. Net revenues in the quarter grew 4 per cent over the prior year’s fiscal fourth quarter and 2 per cent over the preceding quarter. Net income in the quarter declined 5 per cent compared to the record set in the prior year’s fiscal fourth quarter and 3 per cent compared to the preceding quarter. The quarterly decline in net income was largely attributable to a substantial increase in the loan loss provision associated with significant loan growth at Raymond James Bank. At the private client division, there were quarterly net revenues of $899.9 million, up 4 per cent compared to the prior year’s fiscal fourth quarter and 1 per cent compared to the preceding quarter; there was quarterly pre-tax income of $87.7 million, down 12 per cent compared to the record set in the prior year’s fiscal fourth quarter but up 2 per cent compared to the preceding quarter. Private Client Group assets under administration were $453.3 billion, up 1 per cent over September 2014 but down 5 per cent compared to June 2015.

Charles Schwab
Net income for the third quarter of 2015 was $376 million, up 7 per cent from $353 million for the second quarter of 2015, and up 17 per cent from $321 million for the third quarter of 2014. Net income for the nine months ended September 30, 2015 was $1.0 billion, up 6 per cent from the year-earlier period.