Net Income Falls Slightly At Wells Fargo's Wealth, Brokerage, Retirement Arm

Tom Burroughes

16 October 2012

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 .

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 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.