Wells Fargo's Wealth, Investment Management Net Income Little Changed In Q1

Editorial Staff

17 April 2023

Wells Fargo’s wealth and investment management business arm, which includes its private bank, logged $457 million in net income for the three months to end-March, against $465 million a year ago, or dipping 2 per cent.

Total client assets dipped 7 per cent to $1.929 trillion at March 31 from a year before.

Net interest income rose 31 per cent to $1.044 billion, benefiting from the rise in interest rates – a pattern seen in other bank results. On the non-interest income side, however, the figure fell 11 per cent year-on-year to $2.637 billion.

For Wells Fargo as a whole, net income rose to $4.991 billion from $3.788 billion; total revenue rose to $20.73 billion in Q1 2023, from $17.73 billion a year earlier.

At the end of March, the bank’s Common Equity Tier 1 ratio was 10.8 per cent, widening from 10.5 per cent on a year before.

“We had strong results in the first quarter including revenue growth from both the fourth quarter and a year ago, and we continued to make progress on our efficiency initiatives. Delinquencies and net charge-offs continued to slowly increase, as expected,” Charlie Scharf, chief executive, said.

“Looking ahead, we continue to move forward on our risk and control agenda, which is our top priority. While we have made progress, our work is not done, and we remain focused on completing the work in a timely fashion,” he said.