U.S. Bank posts 15% hike in wealth management profits
U.S. Bank's wealth management businesses turned in another robust financial performance, according to the bank's earnings results released on Wednesday.
The Minneapolis-based bank generated $720 million in second-quarter revenue from wealth management and investment services, up 7.1% year-over-year. Revenue was also up from the previous quarter, rising 1%.
Profits from the businesses were even more notable, climbing 15.2% to $205 million from $178 million in the same quarter a year ago.
For the first six months, wealth management and investment services earned $425 million on $1.4 billion in revenue. Profits for the first half of the year were up an impressive 27.6%, while revenue was up 9.1%.
The increase in second-quarter revenue was due in part to an uptick in trust and investment management fees, which increased 5.5% year-over-year due to business growth and favorable market conditions, the bank explained in the earnings release.
U.S. Bank's wealth management and investment services are delivered through five distinct businesses, including U.S. Bancorp Wealth Management. The services range from private banking, investment management and retail brokerage to financial advisory, insurance, trust, custody and fund servicing, the bank said.
Of the five businesses, U.S. Bancorp Wealth Management was the second leading revenue generator, bringing in $222 million, or 30.8% of the total $720 million posted in the second quarter. Revenue from wealth management was up 7.2% year-over-year but down 1.3% from the prior quarter.
Overall, U.S. Bank's parent company earned $1.75 billion, or $1.02 cents per diluted common share, in the second quarter, compared with $1.50 billion, or 85 cents per diluted common share, in the same quarter a year ago.
"Our second-quarter results were highlighted by record revenue, net income and diluted earnings per common share," U.S. Bank CEO Andy Cecere said in the release. “In addition to these solid results, we are investing in our future by expanding our digital offerings, which will allow our customers to access us how, when and where they want and enhance their client experience.”