Regions Bank posted strong first-quarter gains across all its wealth management businesses, according to the bank's financial results released Tuesday.
The Birmingham, Ala.-based bank generated $98 million in first-quarter revenue from its brokerage, trust and insurance operations, up $9 million, or 10.1%, from the same period a year ago. Revenue from wealth management services also rose from the prior quarter, jumping 7.7%.
The increase from the prior quarter was led by higher insurance commissions, higher brokerage fees and increases in investment management and trust income, the bank's CFO, David Turner, said during the earnings call.
Of the bank's three primary wealth management lines of business, investment management and trust services were the undisputed revenue leaders, generating $51 million, a 4.1% year-over-year increase and a 2% uptick from the prior quarter. Insurance services came in second, bringing in $35 million, up 16.7%, or $5 million, from $30 million a year ago, and up 12.9% from $31 million in the previous quarter. Retail brokerage, the smallest contributor to wealth management income, posted the largest gains, jumping 20% to $12 million from $10 million a year ago. Revenue from retail brokerage was also up 20% from the prior quarter.
Overall, Regions Financial, the parent of Regions Bank, earned $218 million, or 16 cents per share, in first-quarter profit, down from $307 million, or 22 cents per share, in the same period of 2014.
"Regions achieved positive operating leverage, grew important sources of non-interest income in the wealth management and mortgage businesses and reduced expenses on an adjusted basis," Grayson Hall, chairman, president and CEO of Regions, said in a statement.
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