Wealth management figures for the first quarter were broadly positive at the banking group, it has reported.

Wells Fargo has reported an 11 per cent year-on-year rise in wealth management net income to $465 million for the first three months of 2022, on the back of a 6 per cent rise in total revenue, standing at $3.757 billion.

Non-interest income at the wealth business rose 2 per cent to $2.958 billion; net interest income rose 22 per cent to $799 million, it said in a statement last week. Non-interest costs rose 5 per cent, mainly caused by higher revenue-related compensation.

Total client assets stood at $2.0 trillion, up slightly on a year ago (1 per cent) but down 5 per cent since the end of 2021.

The wealth management arm covers services to affluent, high net worth and ultra-HNW clients. 

Across the entire Wells Fargo business, net income fell to $3.671 billion from $4.636 billion a year earlier; provision for credit losses contracted to $787 million from $1.048 billion. Total revenues dropped to $17.692 billion from $18.532 billion.

The banking group’s Common Equity Tier 1 ratio – a standard way of measuring a bank’s capital buffer – was 10.5 per cent at the end of March this year.

Wells Fargo repurchased $6 billion of common stock in the first quarter and raised its quarterly common stock dividend to 25 cents a share.

“We are moving forward with our risk and control infrastructure work and continue to note that our path forward will be uneven but remain confident in our ability to continue to close remaining gaps over the next several years,” Charlie Scharf, chief executive, said. 

"Our internal indicators continue to point toward the strength of our customers’ financial position, but the Federal Reserve has made it clear that it will take actions necessary to reduce inflation and this will certainly reduce economic growth,” he continued. “In addition, the war in Ukraine adds additional risk to the downside. Wells Fargo is positioned well to provide support for our clients in a slowing economy. While we will likely see an increase in credit losses from historical lows, we should be a net beneficiary as we will benefit from rising rates, we have a strong capital position, and our lower expense base creates greater margins from which to invest.”